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Gross job flows and institutions in Europe

Author Info

Listed author(s):
  • Gomez-Salvador, Ramon
  • Messina, Julian
  • Vallanti, Giovanna

Abstract

We examine job flows in the 1990s for a sample of 13 European countries. By using a dataset of continuing firms that covers all sectors, we find firm characteristics to be important determinants of job flows, with smaller and younger firms within services typically having a larger degree of job turnover. Once controlled for firm and sectoral effects, the role of institutions in the dynamics of job creation and destruction is examined. As expected, employment protection is found to reduce job flows. Similarly, countries with higher unemployment benefits and more coordinated wage bargaining systems are characterised by lower job flows. JEL Classification: J23, J60

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Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 11 (2004)
Issue (Month): 4 (August)
Pages: 469-485

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Handle: RePEc:eee:labeco:v:11:y:2004:i:4:p:469-485
Contact details of provider: Web page: http://www.elsevier.com/locate/labeco

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Find related papers by JEL classification:
  • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
  • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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  1. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, July.
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  8. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, July.
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  13. Salvanes, Kjell G, 1997. " Market Rigidities and Labour Market Flexibility: An International Comparison," Scandinavian Journal of Economics, Wiley Blackwell, vol. 99(2), pages 315-333, June.
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  15. Gómez-Salvador, Ramón & Messina, Julián & Vallanti, Giovanna, 2004. "Gross job flows and institutions in Europe," Working Paper Series 318, European Central Bank.
  16. Lucifora, Claudio, 1998. "The impact of unions on labour turnover in Italy:: Evidence from establishment level data," International Journal of Industrial Organization, Elsevier, vol. 16(3), pages 353-376, May.
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