The 2008–2009 Automotive Industry Crisis and Regional Unemployment in Czechia

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This paper evaluates the influence of the broadly defined automotive industry on regional increases in unemployment in Czechia during the 2008–2009 economic crisis. Drawing on a unique database of 490 automotive firms with 20 or more employees each and a survey of 271 automotive firms, we employ eight indicators to explain changes in the micro-regional unemployment rate between August 2008 and August 2009. We also calculate the value creation potential, employment stability potential and regional labor market vulnerability index for each firm and investigate the relationship between a firm’s position in the value chain and its propensity to dismiss workers.