Regional unemployment disparities: The example of the Czech Republic

The thesis analyzes factors, which affect regional unemployment rate in districts of the Czech Republic. It analyzes panel data of fourteen districts of the Czech Republic from years 2000-2012. It works with method of fixed effects. Next thesis covers two alternativ models, first model analyzes impact of the economic crisis between years 2000-2012 on determinants of regional unemployment rate. Second alternativ model compares factors affecting regional unemployment rate in districts of the Slovakia with factors, which have impact on regional unemployment rate in the Czech districts. Variables are devided into two groups, to economic and demographic. By regression was founded that regional unemployment rate of districts of the Czech Republic is mainly affected by economic factors, for example share of employed in the industry, level of education and regional product per capita. All of these factors have positive impact on regional unemployment rate. There is only one demographic factor which affects regional unemployment rate, it is population density, which has negative impact on regional unemployment rate. Next was founded that economic crisis influnced relationship between investment and regional unemployment rate. While before the crisis the foreign direct investment have negativ impact on regional unemployment, after the crisis foreign direct investment affects regional unemployment positively. In districts of Slovakia influence of economic and demographic factors id equal. There are for example share of employed in industry, foreign direct investment, population density and share of women on labour force.