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Changes in labour market transitions in Ireland over the Great Recession: what role for policy?

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  • Adele Bergin
  • Elish Kelly
  • Seamus McGuinness

Abstract

This paper assesses the impact the Great Recession had on individuals’ transitions to and from unemployment in Ireland. The rate of transition from unemployment to employment declined between 2006 and 2011, while the rate from employment to unemployment increased. The results indicate that young people are much less likely to exit unemployment but, at the same time, have a lower risk of becoming unemployed. Education has become an increasingly important factor in supporting unemployment exits and reducing the risk of unemployment since the recession. The findings are supportive of current policies aimed at facilitating access to higher education for unemployed people, but they raise questions with regard to the adequacy of the Youth Guarantee. Copyright Bergin et al.; licensee Springer. 2015

Suggested Citation

  • Adele Bergin & Elish Kelly & Seamus McGuinness, 2015. "Changes in labour market transitions in Ireland over the Great Recession: what role for policy?," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-18, December.
    • Handle: RePEc:spr:izaels:v:4:y:2015:i:1:p:1-18:10.1186/s40174-015-0035-0
    DOI: 10.1186/s40174-015-0035-0
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    1. 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.
    2. Kelly, Elish & McGuinness, Seamus, 2013. "The Impact of the Recession on the Structure and Labour Market Success of Young NEET Individuals in Ireland," Papers WP465, Economic and Social Research Institute (ESRI).
    3. Elish Kelly & Seamus McGuinness & Philip J O’connell & David Haugh & Alberto GonzÁlez Pandiella, 2014. "Transitions In and Out of Unemployment among Young People in the Irish Recession," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 56(4), pages 616-634, December.
    4. Tim Callan & Brian Nolan & Claire Keane & Michael Savage & John Walsh, 2014. "Crisis, response and distributional impact: the case of Ireland," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-17, December.
    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. Sue Maguire & Bart Cockx & Juan Dolado & Florentino Felgueroso & Marcel Jansen & Izabela Styczyńska & Elish Kelly & Seamus McGuinness & Werner Eichhorst & Holger Hinte & Ulf Rinne, 2013. "Youth unemployment," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 48(4), pages 196-235, July.
    7. Yun, Myeong-Su, 2004. "Decomposing differences in the first moment," Economics Letters, Elsevier, vol. 82(2), pages 275-280, February.
    8. McGuinness, Seamus & O'Connell, Philip J. & Kelly, Elish & Walsh, John R., 2011. "Activation in Ireland: An Evaluation of the National Employment Action Plan," Research Series, Economic and Social Research Institute (ESRI), number RS20, June.
    9. Conefrey, Thomas, 2011. "Unemployment and Labour Force Participation during the Recession," Economic Letters 04/EL/11, Central Bank of Ireland.
    10. McGinnity, Fran & Russell, Helen & Watson, Dorothy & Kingston, Gillian & Kelly, Elish, 2014. "Winners and Losers? The Equality Impact of the Great Recession in Ireland," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT265, June.
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    Cited by:

    1. Barrett, Alan & McGinnitty, Frances & Quinn, Emma (ed.), 2017. "Monitoring Report on Integration 2016," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT330, June.
    2. Amparo Nagore García & Arthur Soest, 2017. "Unemployment Exits Before and During the Crisis," LABOUR, CEIS, vol. 31(4), pages 337-368, December.
    3. McGinnity, Frances & Enright, Shannen & Quinn, Emma & Maître, Bertrand & Privalko, Ivan & Darmody, Merike & Polakowski, Michal, 2020. "Monitoring report on integration 2020," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT403, June.
    4. Stephen Byrne & Martin D. O’Brien, 2017. "Understanding Irish Labour Force Participation," The Economic and Social Review, Economic and Social Studies, vol. 48(1), pages 27-60.
    5. Iva Tomic, 2016. "What drives youth unemployment in Europe?," Working Papers 1601, The Institute of Economics, Zagreb.
    6. Byrne, Stephen & Conefrey, Thomas, 2017. "A Non-Employment Index for Ireland," Economic Letters 09/EL/17, Central Bank of Ireland.

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    More about this item

    Keywords

    I21; J01; J60; J64; J68; Labour market transitions; Great recession; Longitudinal data; Decomposition techniques; Ireland;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • 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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