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The Effects of the Recent Economic Crisis on Social Protection and Labour Market Arrangements across Socio-Economic Groups

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Author Info

  • Basso, Gaetano

    ()
    (University of California, Davis)

  • Dolls, Mathias

    ()
    (ZEW Mannheim)

  • Eichhorst, Werner

    ()
    (IZA)

  • Leoni, Thomas

    ()
    (WIFO - Austrian Institute of Economic Research)

  • Peichl, Andreas

    ()
    (ZEW Mannheim)

Abstract

The Great Recession did not only affect European countries to a varying extent, its impact on national labour markets and on specific socio-economic groups in those markets also varied greatly. Institutional arrangements such as employment protection, unemployment insurance benefits and minimum income support, working time flexibility and wage setting played a crucial role in determining to what extent the economic crisis led to higher unemployment, wage cuts or income losses and rising poverty. As the crisis gained momentum, the action of automatic stabilisation mechanisms built into the national tax-benefit and social protection systems was accompanied by heterogeneous sets of discretionary policy measures. While these factors can explain cross-country variation in labour market developments, they also lead to an unequal distribution of economic risks associated with the crisis across socio-economic groups. The present paper aims to investigate and assess to what extent the financial and economic crisis that hit the global economy in 2008-2009 impacted these labour market developments and to what extent different socio-economic groups were affected.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6080.

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Length: 25 pages
Date of creation: Oct 2011
Date of revision:
Publication status: published in: Intereconomics, 2012, 47 (4), 217-223.
Handle: RePEc:iza:izadps:dp6080

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Keywords: tax systems; unemployment protection; automatic stabilisers; Europe; Great Recession;

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  1. Katharine G. Abraham & Susan N. Houseman, 1994. "Does Employment Protection Inhibit Labor Market Flexibility? Lessons from Germany, France, and Belgium," Book chapters authored by Upjohn Institute researchers, in: Rebecca M. Blank (ed.), Social Protection Versus Economic Flexibility: Is There a Trade-off?, pages 59-93 W.E. Upjohn Institute for Employment Research.
  2. Dolls, Mathias & Fuest, Clemens & Peichl, Andreas, 2010. "Automatic Stabilizers, Economic Crisis and Income Distribution in Europe," IZA Discussion Papers 4917, Institute for the Study of Labor (IZA).
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