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What Shifts Did COVID-19 Year 2020 Bring to the Labour Market in Europe?

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  • Baert, Stijn

    (Ghent University)

Abstract

This letter discusses the evolution of key labour market indicators in the EU-27 countries between 2019 and 2020, i.e. between the year before the COVID-19 crisis broke out and the year in which it impacted the economy heavily. Whereas earlier policy-oriented studies have dealt with the evolution of unemployment in 2020, often country by country, this letter focuses on the evolution of unemployment as well as inactivity across European countries. Indeed, previous crises have typically led not only to more unemployment but also to larger numbers of discouraged unemployed and thus more inactivity. It appears that the Southern European countries, in particular, recorded increases in inactivity, while the Baltic States experienced higher unemployment. In many other countries, unemployment and inactivity remained remarkably stable despite COVID-19.

Suggested Citation

  • Baert, Stijn, 2021. "What Shifts Did COVID-19 Year 2020 Bring to the Labour Market in Europe?," IZA Policy Papers 177, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izapps:pp177
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    References listed on IDEAS

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    1. Jeff E. Biddle, 2014. "Retrospectives: The Cyclical Behavior of Labor Productivity and the Emergence of the Labor Hoarding Concept," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 197-212, Spring.
    2. Baert, Stijn, 2021. "The iceberg decomposition: A parsimonious way to map the health of labour markets," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 350-365.
    3. Louis Lippens & Eline Moens & Philippe Sterkens & Johannes Weytjens & Stijn Baert, 2021. "How do employees think the COVID-19 crisis will affect their careers?," PLOS ONE, Public Library of Science, vol. 16(5), pages 1-19, May.
    4. Bassem Kamar & Damyana Bakardzhieva & Mohamed Goaied, 2019. "Effects of pro-growth policies on employment: evidence of regional disparities," Applied Economics, Taylor & Francis Journals, vol. 51(40), pages 4337-4367, August.
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    Cited by:

    1. Brini, Elisa & Scherer, Stefani & Vitali, Agnese, 2023. "Gender and beyond. Employment patterns during the Covid-19 pandemic in Italy," SocArXiv bkgfc, Center for Open Science.

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    More about this item

    Keywords

    disincentive effect; iceberg decomposition; COVID-19; employment; inactivity; unemployment;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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