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Mismatch on the Dutch Labour Market in the Great Recession

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  • Hugo Erken
  • Eric Loon
  • Wouter Verbeek

Abstract

We study if labour market mismatch has increased in the Netherlands during the Great Recession. First, we estimate a so-called “steady-state” Beveridge curve based on labour market flows. An outward shift of this curve implies decreasing matching efficiency. Second, we construct a mismatch index which enables us to calculate the contribution of sector mismatch to the increase in unemployment. Our analyses show little support for the hypothesis that mismatch is currently a significant problem for the Dutch labour market. At the aggregate level, the Beveridge curve has not shifted outwards. In addition, at most one-ninth of the Dutch unemployment rise can be attributed to sector mismatch, which is comparable to the contribution during the previous downturn. Copyright Springer Science+Business Media New York 2015

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  • Hugo Erken & Eric Loon & Wouter Verbeek, 2015. "Mismatch on the Dutch Labour Market in the Great Recession," De Economist, Springer, vol. 163(4), pages 435-459, December.
    • Handle: RePEc:kap:decono:v:163:y:2015:i:4:p:435-459
    DOI: 10.1007/s10645-015-9257-9
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    Cited by:

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    3. Jung, Philip & Korfmann, Philipp & Preugschat, Edgar, 2023. "Optimal regional labor market policies," European Economic Review, Elsevier, vol. 152(C).

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    More about this item

    Keywords

    Beveridge curve; Mismatch; Labour market; Unemployment; Vacancies; Great Recession; E20; E24; J63; J69;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J69 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Other

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