IDEAS home Printed from https://ideas.repec.org/a/bis/bisqtr/2312f.html
   My bibliography  Save this article

Labour markets: what explains the resilience?

Author

Listed:
  • Bernardus Doornik
  • Deniz Igan
  • Enisse Kharroubi

Abstract

The post-pandemic recovery features significant tightness in labour markets – a situation where jobs are plentiful and available workers scarce. This special feature discusses the possible role of supply and demand factors for this tightness and the attendant contrast between buoyant employment and lacklustre output growth. We find that labour hoarding on the demand side, and adverse demographic trends and pandemic-related preference shifts on the supply side, can go a long way in explaining these dynamics. Finally, we relate labour market developments and their persistence to the inflation outlook and monetary policy trade-offs.

Suggested Citation

  • Bernardus Doornik & Deniz Igan & Enisse Kharroubi, 2023. "Labour markets: what explains the resilience?," BIS Quarterly Review, Bank for International Settlements, December.
    • Handle: RePEc:bis:bisqtr:2312f
    as

    Download full text from publisher

    File URL: http://www.bis.org/publ/qtrpdf/r_qt2312f.pdf
    Download Restriction: no
    File URL: http://www.bis.org/publ/qtrpdf/r_qt2312f.htm
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Prithwiraj (Raj) Choudhury & Cirrus Foroughi & Barbara Larson, 2021. "Work‐from‐anywhere: The productivity effects of geographic flexibility," Strategic Management Journal, Wiley Blackwell, vol. 42(4), pages 655-683, April.
    2. Federico Ravenna & Carl E. Walsh, 2022. "Worker Heterogeneity, Selection, and Unemployment Dynamics in a Pandemic," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 54(S1), pages 113-155, February.
    3. Nicholas Bloom & James Liang & John Roberts & Zhichun Jenny Ying, 2015. "Does Working from Home Work? Evidence from a Chinese Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(1), pages 165-218.
    4. Georg Graetz & Guy Michaels, 2017. "Is Modern Technology Responsible for Jobless Recoveries?," American Economic Review, American Economic Association, vol. 107(5), pages 168-173, May.
    5. Claudio Borio & Marco Jacopo Lombardi & James Yetman & Egon Zakrajsek, 2023. "The two-regime view of inflation," BIS Papers, Bank for International Settlements, number 133.
    6. José María Barrero & Nicholas Bloom & Steven J. Davis, 2023. "The Evolution of Work from Home," Journal of Economic Perspectives, American Economic Association, vol. 37(4), pages 23-50, Fall.
    7. Michael Gibbs & Friederike Mengel & Christoph Siemroth, 2023. "Work from Home and Productivity: Evidence from Personnel and Analytics Data on Information Technology Professionals," Journal of Political Economy Microeconomics, University of Chicago Press, vol. 1(1), pages 7-41.
    8. Niklas Engbom, 2022. "Labor Market Fluidity and Human Capital Accumulation," NBER Working Papers 29698, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ro’i Zultan & Eldar Dadon, 2023. "Missing the forest for the trees: when monitoring quantitative measures distorts task prioritization," Working Papers 2319, Ben-Gurion University of the Negev, Department of Economics.
    2. Shen, Lucas, 2022. "Does working from home work? A natural wxperiment from lockdowns," MPRA Paper 115446, University Library of Munich, Germany.
    3. Jose Maria Barrero & Nicholas Bloom & Steven J. Davis, 2020. "Why Working From Home Will Stick," Working Papers 2020-174, Becker Friedman Institute for Research In Economics.
    4. Andrew L. Kun & Raffaella Sadun & Orit Shaer & Thomaz Teodorovicz, 2022. "How does working from home during Covid-19 affect what managers do? Evidence from time-use studies," CEP Discussion Papers dp1844, Centre for Economic Performance, LSE.
    5. Vij, Akshay & Souza, Flavio F. & Barrie, Helen & Anilan, V. & Sarmiento, Sergio & Washington, Lynette, 2023. "Employee preferences for working from home in Australia," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 782-800.
    6. Goux, Dominique & Maurin, Eric, 2024. "Sick of Working from Home?," IZA Discussion Papers 16848, Institute of Labor Economics (IZA).
    7. Masayuki Morikawa, 2023. "Productivity dynamics of remote work during the COVID‐19 pandemic," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 62(3), pages 317-331, July.
    8. Marie Boltz & Bart Cockx & Ana Maria Diaz & Luz Magdalena Salas, 2023. "How does working‐time flexibility affect workers' productivity in a routine job? Evidence from a field experiment," British Journal of Industrial Relations, London School of Economics, vol. 61(1), pages 159-187, March.
    9. Janice C. dup Eberly & John dup Fernald, 2022. "Jackson Hole 2022 - Reassessing Economic Constraints: Potential Output (The Impact of COVID on Productivity and Potential Output)," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, August.
    10. Guillaume Gueguen & Claudia Senik, 2023. "Adopting telework: The causal impact of working from home on subjective well‐being," British Journal of Industrial Relations, London School of Economics, vol. 61(4), pages 832-868, December.
    11. Lina Vyas, 2022. "“New normal” at work in a post-COVID world: work–life balance and labor markets [An employee-focused human resource management perspective for the management of global virtual teams]," Policy and Society, Darryl S. Jarvis and M. Ramesh, vol. 41(1), pages 155-167.
    12. Essbaumer, Elisabeth, 2022. "Home Office is here to stay? Access to Home Office and Remote Work Potentials across Swiss Industries," Economics Working Paper Series 2213, University of St. Gallen, School of Economics and Political Science.
    13. Guillaume Gueguen & Claudia Senik, 2022. "Adopting Telework. The causal impact of working from home on subjective wellbeing," PSE Working Papers halshs-03455306, HAL.
    14. Dan Zhou & Sibo Yang & Xue Li, 2022. "Internet Use and Job Satisfaction: Evidence from China," IJERPH, MDPI, vol. 19(19), pages 1-16, September.
    15. John G. Fernald & Huiyu Li, 2022. "The Impact of COVID on Productivity and Potential Output," Working Paper Series 2022-19, Federal Reserve Bank of San Francisco.
    16. Leth-Petersen, Søren & Lee, Minjoon & Caplin, Andrew & Shapiro, Matthew D. & Sæverud, Johan, 2022. "How Worker Productivity and Wages Grow with Tenure and Experience: The Firm Perspective," CEPR Discussion Papers 17545, C.E.P.R. Discussion Papers.
    17. Stijn Van Nieuwerburgh, 2023. "The remote work revolution: Impact on real estate values and the urban environment: 2023 AREUEA Presidential Address," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(1), pages 7-48, January.
    18. Dutcher, Glenn & Saral, Krista, 2022. "Remote Work and Team Productivity," MPRA Paper 115253, University Library of Munich, Germany.
    19. Michele Mariani & Livia Ristuccia & Pasqualino Montanaro, 2023. "Propensity to work remotely in the Bank of Italy: a behavioural analysis," Questioni di Economia e Finanza (Occasional Papers) 753, Bank of Italy, Economic Research and International Relations Area.
    20. van der Wouden, Frank & Youn, Hyejin, 2023. "The impact of geographical distance on learning through collaboration," Research Policy, Elsevier, vol. 52(2).

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bis:bisqtr:2312f. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Beslmeisl (email available below). General contact details of provider: https://edirc.repec.org/data/bisssch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.