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Shifts in euro area Beveridge curves and their determinants

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  • Bonthuis, Boele
  • Jarvis, Valerie
  • Vanhala, Juuso

Abstract

This paper analyses euro area Beveridge curves at the euro area aggregate and country level over the past 25 years. Using an autoregressive distributed lag model we find a significant outward shift in the euro area Beveridge curve since the onset of the crisis, but considerable heterogeneity at country level. We test for factors underlying these developments using the local projections method of Jordà (2005). Skill mismatch, high shares of workers in the construction sector, as well as high pre-crisis financial slack and home ownership rates appear strong determinants of outward shifts in Beveridge curves in response to a negative shock. Higher female participation rates mitigate these effects.

Suggested Citation

  • Bonthuis, Boele & Jarvis, Valerie & Vanhala, Juuso, 2015. "Shifts in euro area Beveridge curves and their determinants," Bank of Finland Research Discussion Papers 2/2015, Bank of Finland.
    • Handle: RePEc:zbw:bofrdp:rdp2015_002
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    4. Crowley, Patrick M. & Trombley, Christopher, 2015. "Are monetary unions more synchronous than non-monetary unions?," Research Discussion Papers 11/2015, Bank of Finland.
    5. Daron Acemoglu & Ufuk Akcigit & Douglas Hanley & William Kerr, 2016. "Transition to Clean Technology," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 52-104.
    6. Josué Diwambuena & Raquel Fonseca & Stefan Schubert, 2021. "Italian Labour Frictions and Wage Rigidities in an Estimated DSGE," BEMPS - Bozen Economics & Management Paper Series BEMPS88, Faculty of Economics and Management at the Free University of Bozen.
    7. Jason Anastasopoulos & George J. Borjas & Gavin G. Cook & Michael Lachanski, 2018. "Job Vacancies, the Beveridge Curve, and Supply Shocks: The Frequency and Content of Help-Wanted Ads in Pre- and Post-Mariel Miami," NBER Working Papers 24580, National Bureau of Economic Research, Inc.
    8. Robert Anderton & Boele Bonthuis, 2015. "Downward Wage Rigidities in the Euro Area," Discussion Papers 2015-09, University of Nottingham, GEP.
    9. Brand, Claus & Obstbaum, Meri & Coenen, Günter & Sondermann, David & Lydon, Reamonn & Ajevskis, Viktors & Hammermann, Felix & Angino, Siria & Hernborg, Nils & Basso, Henrique & Hertweck, Matthias & Bi, 2021. "Employment and the conduct of monetary policy in the euro area," Occasional Paper Series 275, European Central Bank.
    10. Dag Kolsrud, 2018. "Mismatch in the Norwegian Labour Market 2003–2013: Did Immigrants Make a Difference?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(3), pages 979-997, June.
    11. Andrew Weaver, 2022. "Who Has Trouble Hiring? Evidence from a National IT Survey," ILR Review, Cornell University, ILR School, vol. 75(3), pages 608-637, May.
    12. Eerola, Essi & Saarimaa, Tuukka, 2015. "Who Benefits from Public Housing?," Working Papers 68, VATT Institute for Economic Research.
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    More about this item

    Keywords

    Beveridge curve; crisis; mismatch; unemployment; labour shortages; vacancies;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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