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State Dependence and Labor Market Transitions in the European Union

Author

Listed:
  • Richard Duhautois
  • Christine Erhel
  • Mathilde Guergoat-Larivière

Abstract

This article proposes an empirical analysis of labor market mobility in the European Union based on EU-SILC data. It uses conditional dynamic multinomial logit models that allow state dependence and unobserved heterogeneity to be disentangled. The article investigates state dependence in quarterly labor market transitions among fulltime employment, part-time employment, unemployment and inactivity, comparing across five country groups (the UK, continental, eastern, nordic and southern). It shows that state dependence in unemployment or inactivity is generally lower in the UK than in other country groups except the nordic group. The persistence of part-time employment appears higher than in the UK for all groups, especially in continental countries. Differences by social group (according to age, sex and education) are also found at the European level and vary across country groups.

Suggested Citation

  • Richard Duhautois & Christine Erhel & Mathilde Guergoat-Larivière, 2018. "State Dependence and Labor Market Transitions in the European Union," Annals of Economics and Statistics, GENES, issue 131, pages 59-82.
    • Handle: RePEc:adr:anecst:y:2018:i:131:p:59-82
    DOI: 10.15609/annaeconstat2009.131.0059
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    File URL: https://www.jstor.org/stable/10.15609/annaeconstat2009.131.0059
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    References listed on IDEAS

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    1. Haltiwanger, John & Scarpetta, Stefano & Schweiger, Helena, 2006. "Assessing job flows across countries : the role of industry, firm size, and regulations," Policy Research Working Paper Series 4070, The World Bank.
    2. Thierry Magnac, 1997. "Les stages et l'insertion professionnelle des jeunes : une évaluation statistique," Économie et Statistique, Programme National Persée, vol. 304(1), pages 75-94.
    3. Christine Erhel & Mathilde Guergoat-Larivière, 2013. "La mobilité de la main d'œuvre en Europe : le rôle des caractéristiques individuelles et de l'hétérogénéité entre pays," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00849323, HAL.
    4. Melanie Ward-Warmedinger & Corrado Macchiarelli, 2013. "Transitions in labour market status in the European Union," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 9, London School of Economics / European Institute.
    5. Melanie Ward-Warmedinger & Corrado Macchiarelli, 2014. "Transitions in labour market status in EU labour markets," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-25, December.
    6. Aeberhardt, Romain & Davezies, Laurent, 2012. "Practical guidelines for the estimation and inference of a dynamic logistic model with fixed-effects," Economics Letters, Elsevier, vol. 115(2), pages 300-304.
    7. Bo E. Honoré & Ekaterini Kyriazidou, 2000. "Panel Data Discrete Choice Models with Lagged Dependent Variables," Econometrica, Econometric Society, vol. 68(4), pages 839-874, July.
    8. Christine Erhel & Mathilde Guergoat-Larivière, 2013. "La mobilité de la main-d'œuvre en Europe. Le rôle des caractéristiques individuelles et de l'hétérogénéité entre pays," Revue économique, Presses de Sciences-Po, vol. 64(2), pages 309-343.
    9. Magnac, Thierry, 2000. "Subsidised Training and Youth Employment: Distinguishing Unobserved Heterogeneity from State Dependence in Labour Market Histories," Economic Journal, Royal Economic Society, vol. 110(466), pages 805-837, October.
    10. Christine Erhel & Mathilde Guergoat-Larivière, 2013. "La mobilité de la main d'œuvre en Europe : le rôle des caractéristiques individuelles et de l'hétérogénéité entre pays," Post-Print halshs-00849323, HAL.
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    Cited by:

    1. Nathalie Greenan & Ekaterina Kalugina & Mouhamadou Niang, 2017. "Work Organisation and Workforce Vunerability to Non-Employment: Evidence from OECD’s Survey on Adult Skills (PIAAC)
      [Organisation du travail et vulnérabilité au non-emploi : une étude empirique à p      ," Working Papers hal-02162457, HAL.

    More about this item

    Keywords

    Labor Market Mobility; State Dependence; Unobserved Heterogeneity; European Union; Inequalities; Institutions.;

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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