Liberalising Labour

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A recent survey of the Czech economy, conducted by the OECD, identifies a number of obstacles to the reallocation of labour that threaten to undermine the country's economic growth potential. BMI View: We share the OECD's concerns. The government needs to address the politically sensitive issue of deregulation of property rents, which currently creates serious distortions to labour supply and serves as a crude and counterproductive tool for redistribution of wealth. Some improvements have been seen in the fields of labour market regulation and the supply of skills, but the government's unwillingness to consider the introduction of fees for tertiary education appears both ill-judged and unsustainable.