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Explaining the Evolution of Job Tenure in Europe, 1995–2020

Author

Listed:
  • Bussolo Maurizio

    (World Bank, Washington D.C., District of Columbia United States.)

  • Capelle Damien

    (International Monetary Fund)

  • Lokshin Michael M.

    (World Bank, Washington D.C., District of Columbia United States.)

  • Torre Iván

    (World Bank, Washington D.C., District of Columbia United States.)

  • Winkler Hernan

    (World Bank, Washington D.C., District of Columbia United States.)

Abstract

During the last quarter century, job tenure in Europe has shortened. Using data from Eurostat Labor Force Surveys of 29 countries from 1995 to 2020 and applying an age-period-cohort decomposition to analyze changes in tenure for specific birth cohorts, we show that tenure has shrunk for cohorts born in more recent years. To account for compositional changes within cohorts, we estimate the probability of holding jobs of different durations, conditional on individual and employment-related characteristics. The estimations demonstrate that, over time, the likelihood of having a medium- or long-term job decreased and holding a short-term job increased. We also find that stricter job protection legislation appears to decrease the probability of holding a short-term job, and higher trade openness and ICT-related technological change are correlated with an increase of that probability.

Suggested Citation

  • Bussolo Maurizio & Capelle Damien & Lokshin Michael M. & Torre Iván & Winkler Hernan, 2023. "Explaining the Evolution of Job Tenure in Europe, 1995–2020," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 13(1), pages 1-32, January.
    • Handle: RePEc:vrs:izajlp:v:13:y:2023:i:1:p:32:n:3
    DOI: 10.2478/izajolp-2023-0007
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    More about this item

    Keywords

    job tenure; employment; labor maker; labor legislation; trade openness; Europe;
    All these keywords.

    JEL classification:

    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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