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Labour Market Dynamics and Worker Heterogeneity During the Great Recession – Evidence from Europe

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  • Bachmann, Ronald
  • Bechara, Peggy
  • Kramer, Anica
  • Rzepka, Sylvi

Abstract

Using harmonized micro data, this paper investigates the effects of the early phase (2008-10) of the recent economic crisis on transitions between labour market states in Europe. Our analysis focuses on individual heterogeneity, on the type of employment contract, and on crosscountry differences. Our analysis shows that specific worker groups, such as men and young persons, were particularly strongly hit by the crisis. Furthermore, more transitions from employment, and especially temporary employment, to unemployment were the main factor behind the rise in unemployment; while reduced unemployment outflows did not contribute substantially to the increase in unemployment during the early phase of the crisis.

Suggested Citation

  • Bachmann, Ronald & Bechara, Peggy & Kramer, Anica & Rzepka, Sylvi, 2014. "Labour Market Dynamics and Worker Heterogeneity During the Great Recession – Evidence from Europe," Ruhr Economic Papers 499, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:499
    DOI: 10.4419/86788572
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    Cited by:

    1. Ronald Bachmann & Peggy Bechara & Anica Kramer & Sylvi Rzepka, 2015. "Labour market dynamics and worker heterogeneity during the Great Recession – Evidence from Europe," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-29, December.
    2. Y. Saks, 2016. "Socio-economic transitions on the labour market : a European benchmarking exercise," Economic Review, National Bank of Belgium, issue iii, pages 41-58, December.
    3. María del Pilar Toyos, 2022. "Cierre de escuelas en pandemia y brechas de género en Argentina: ¿madres más vulnerables?," Asociación Argentina de Economía Política: Working Papers 4603, Asociación Argentina de Economía Política.
    4. Jaison R. Abel & Richard Florida & Todd M. Gabe, 2018. "Can low-wage workers find better jobs?," Staff Reports 846, Federal Reserve Bank of New York.
    5. Ronald Bachmann & Rahel Felder, 2021. "Labour market transitions, shocks and institutions in turbulent times: a cross-country analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(2), pages 329-352, May.
    6. Vodopivec, Matija & Laporsek, Suzana & Vodopivec, Milan, 2016. "Levelling the Playing Field: The Effects of Slovenia's 2013 Labour Market Reform," IZA Discussion Papers 9783, Institute of Labor Economics (IZA).
    7. Bachmann, Ronald & Boockmann, Bernhard & Cim, Merve & Felder, Rahel & Frings, Hanna & Janisch, Laura M. & Schaffner, Sandra & Späth, Jochen & Tamm, Marcus, 2018. "Vergleich von Datenquellen für eine Analyse von Übergängen am Arbeitsmarkt: Studie im Auftrag der Mindestlohnkommission," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 180217.
    8. Sara Rica & Yolanda F. Rebollo-Sanz, 2017. "Gender Differentials in Unemployment Ins and Outs during the Great Recession in Spain," De Economist, Springer, vol. 165(1), pages 67-99, March.
    9. Alessandro Arrighetti & Eleonora Bartoloni & Fabio Landini & Chiara Pollio, 2019. "Exuberant Proclivity Towards Non-Standard Employment:Evidence from Linked Employer-Employee Data," Working Papers 1905, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2019.
    10. Felder, Rahel & Bachmann, Ronald, 2016. "Labour Market Transitions, Shocks and Institutions during the Great Recession: A Cross-Country Analysis," VfS Annual Conference 2016 (Augsburg): Demographic Change 145851, Verein für Socialpolitik / German Economic Association.
    11. Bussolo Maurizio & Lokshin Michael M. & Torre Iván & Winkler Hernan & Capelle Damien, 2023. "Explaining the Evolution of Job Tenure in Europe, 1995–2020," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 13(1), pages 1-32, January.
    12. Hélène Couprie & Xavier Joutard, 2017. "Atypical Employment and Prospects of the Youth on the Labor Market in a Crisis Context," THEMA Working Papers 2017-08, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    13. Schoiswohl Florian & Wüger Michael, 2016. "A Representative Matched Cross-section Survey for Austria - Measuring Worker Flow Dynamics with the Austrian Labour Force Survey," Department of Economics Working Papers wuwp223, Vienna University of Economics and Business, Department of Economics.
    14. NAGORE GARCIA Amparo & VAN SOEST Arthur, 2016. "Unemployment Exits Before and During the Crisis," LISER Working Paper Series 2016-14, Luxembourg Institute of Socio-Economic Research (LISER).
    15. Henry Redondo, 2023. "From bricklayers to waiters: Reallocation in a deep recession," French Stata Users' Group Meetings 2023 27, Stata Users Group.
    16. Ronald BACHMANN & Rahel FELDER, 2018. "Job stability in Europe over the cycle," International Labour Review, International Labour Organization, vol. 157(3), pages 481-518, September.
    17. Laura Barbieri & Chiara Mussida, 2018. "Structural differences across macroregions: an empirical investigation," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(2), pages 215-246, May.
    18. Amparo Nagore García & Arthur Soest, 2017. "Unemployment Exits Before and During the Crisis," LABOUR, CEIS, vol. 31(4), pages 337-368, December.
    19. Todd Gabe & Jaison R. Abel & Richard Florida, 2019. "Can Workers in Low-End Occupations Climb the Job Ladder?," Economic Development Quarterly, , vol. 33(2), pages 92-106, May.
    20. Martina Bisello & Vincenzo Maccarrone & Enrique Fernández-Macías, 2022. "Occupational mobility, employment transitions and job quality in Europe: The impact of the Great Recession," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 43(2), pages 585-611, May.

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    More about this item

    Keywords

    recession; labour market transitions; Markov transition matrices; worker heterogeneity;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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