Why Labour Market of V4 Countries Developed Differently Compared to Western Countries?

The employment level of certain Eastern European countries (and Visegrad Group among them) was still not able to reach levels typical for developed countries. This phenomenon can be clearly observed in the case of employment development in Germany as one of the pioneers in a combination of economic and employment growth. The obvious reason for the difference is the use of a different market system which prevailed in countries during past half century. However, the paper aims to go beyond this explanation. It utilises structural decomposition analysis for these countries within 1995 2009 time-frame based on World Input-Output Database. Beside typical and deeply analysed contribution of labour productivity change, also the contribution of others structural determinants are elaborated. Also, the contribution of various aspects of final demand is investigated and provides results aiming at the better understanding of the role of structural changes in the labour market of post-transformed economies.