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Abstract
The Beveridge relationship between unemployment and vacancy rates reveals essential information about the flexibility and state of the labor market. Empirical literature investigates national or regional Beveridge curves by estimating their positions relative to the origin and factors responsible for shifts in the curve. This paper attempted to estimate the Beveridge curve for the Slovak Republic during a period of record high unemployment, from 1997 to 2002, using regional data. The analysis confirmed the existence of a negative relation between unemployment and vacancies in the Slovak labor market described by the Beveridge curve. Factors affecting the curve and its position included the amount of foreign investments and the share of industry employment in the region. Changes in mobility of labor were found not to have any relation to the Beveridge curve.
