IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v81y2024icp322-340.html
   My bibliography  Save this article

Is euro area at full employment ? — A diagnosis from the Beveridge curve

Author

Listed:
  • Leythienne, Jean Fernand

Abstract

We propose a simple and robust method to assess if an economy is at full employment, in real time. For this purpose, we first prove that the Beveridge curve is a rectangular hyperbola with one single parameter equal to the square of the mismatch unemployment rate. We apply this equation to obtain a breakdown of the unemployment rate in the euro area and to study how mismatch unemployment and the unemployment gap were impacted by the great recession, the sovereign debt crisis and the COVID-19 pandemics. We finally analyse how disparities in job vacancy rates across countries affect the overall matching at euro area level and derive recommendations for economic policy.

Suggested Citation

  • Leythienne, Jean Fernand, 2024. "Is euro area at full employment ? — A diagnosis from the Beveridge curve," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 322-340.
    • Handle: RePEc:eee:ecanpo:v:81:y:2024:i:c:p:322-340
    DOI: 10.1016/j.eap.2023.10.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592623002503
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2023.10.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Labour market; Beveridge curve; Unemployment; Job vacancy statistics; Macroeconomics; European Union;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:81:y:2024:i:c:p:322-340. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.