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Labour market dynamics and worker heterogeneity during the Great Recession – Evidence from Europe

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  • Ronald Bachmann

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  • Peggy Bechara
  • Anica Kramer
  • Sylvi Rzepka

Abstract

Using harmonised 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 cross-country 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, especially temporary employment to unemployment, were the main factor behind rising unemployment. Reduced unemployment outflows did not contribute substantially to the increase in unemployment during the early phase of the crisis. JEL classification: J6, E24 Copyright Bachmann et al. 2015

Suggested Citation

  • 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.
  • Handle: RePEc:spr:izaels:v:4:y:2015:i:1:p:1-29:10.1186/s40174-015-0043-0
    DOI: 10.1186/s40174-015-0043-0
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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. 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.
    3. 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.
    4. Bachmann, Ronald & Felder, Rahel, 2017. "Labour market transitions, shocks and institutions in turbulent times: A cross-country analysis," Ruhr Economic Papers 709, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. 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.
    6. Gabe, Todd M. & Abel, Jaison R. & Florida, Richard, 2018. "Can low-wage workers find better jobs?," Staff Reports 846, Federal Reserve Bank of New York.
    7. repec:kap:empiri:v:45:y:2018:i:2:d:10.1007_s10663-016-9356-0 is not listed on IDEAS
    8. 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 for the Study of Labor (IZA).
    9. Felder, Rahel & Bachmann, Ronald, 2016. "Labour Market Transitions, Shocks and Institutions during the Great Recession: A Cross-Country Analysis," Annual Conference 2016 (Augsburg): Demographic Change 145851, Verein für Socialpolitik / German Economic Association.
    10. repec:bla:labour:v:31:y:2017:i:4:p:337-368 is not listed on IDEAS
    11. 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.
    12. 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 Paper Series 4935, WU Vienna University of Economics and Business.
    13. NAGORE GARCIA Amparo & VAN SOEST Arthur, 2016. "Unemployment Exits Before and During the Crisis," LISER Working Paper Series 2016-14, LISER.

    More about this item

    Keywords

    Recession; Labour market transitions; Markov transition matrices; Worker heterogeneity;

    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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