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Worker flows in the European Union during the Great Recession

Author

Listed:
  • José María Casado

    (Banco de España)

  • Cristina Fernández

    (Banco de España)

  • Juan F. Jimeno

    (Banco de España)

Abstract

We firstly measure the contribution of worker flows across employment, unemployment, and non-participation to the change in unemployment in eleven EU countries during the period 2006-2012, paying special attention to which socio-demographic groups in each of the countries were most affected by job creation and job destruction during the crisis. We find that age, to a greater extent than educational attainment, is the main determinant of flows from employment into unemployment, particularly in those countries where unemployment increased most. Secondly, we highlight some institutional features of the labour market (employment protection legislation, unemployment insurance and the incidence of active labour market policies) that help explain the cross-country differences in flows between employment and unemployment and in their socio-demographic composition. Finally, we examine whether the crisis has led to some employment reallocation across sectors, finding that, so far, there is no clear evidence in favour of cleansing effects.

Suggested Citation

  • José María Casado & Cristina Fernández & Juan F. Jimeno, 2015. "Worker flows in the European Union during the Great Recession," Working Papers 1529, Banco de España.
  • Handle: RePEc:bde:wpaper:1529
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Daouli, Joan & Demoussis, Michael & Giannakopoulos, Nicholas & Lambropoulou, Nikolitsa, 2015. "The ins and outs of Greek unemployment in the Great Depression," MPRA Paper 66299, University Library of Munich, Germany.
    2. Guilherme Bandeira & Jordi Caballe & Eugenia Vella, 2019. "Fiscal Austerity and Migration: A Missing Link," Working Papers 2019009, The University of Sheffield, Department of Economics.
    3. Boeri, Tito & Jimeno, Juan Francisco, 2015. "The unbearable divergence of unemployment in Europe," LSE Research Online Documents on Economics 65001, London School of Economics and Political Science, LSE Library.
    4. Guilherme Bandeira & Jordi Caballé & Eugenia Vella, 2018. "Should I stay or should I go? Austerity, unemployment and migration," Working Papers 1839, Banco de España.
    5. Robert Anderton & Benedetta Di Lupidio, 2019. "Effects of labour and product market regulation on worker flows: Evidence for the euro area using micro data," Discussion Papers 2019-01, University of Nottingham, GEP.
    6. Masuch, Klaus & Anderton, Robert & Setzer, Ralph & Benalal, Nicholai, 2018. "Structural policies in the euro area," Occasional Paper Series 210, European Central Bank.
    7. Kónya, István, 2016. "Munkapiaci áramlások Magyarországon és Európában [Labour-market flows in Hungary and Europe]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 357-379.
    8. Anderton, Robert & Di Lupidio, Benedetta, 2019. "Effects of labour and product market regulation on worker flows: evidence for the euro area using micro data," Working Paper Series 2312, European Central Bank.
    9. 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.
    10. Boeri, Tito & Jimeno, Juan F., 2016. "Learning from the Great Divergence in unemployment in Europe during the crisis," Labour Economics, Elsevier, vol. 41(C), pages 32-46.
    11. István Konya, 2016. "Labor flows in Hungary and Europe," CERS-IE WORKING PAPERS 1602, Institute of Economics, Centre for Economic and Regional Studies.
    12. Joan Daouli & Michael Demoussis & Nicholas Giannakopoulos & Nikolitsa Lampropoulou, 2015. "The Ins and Outs of Unemployment in the Current Greek Economic Crisis," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 13(2), pages 177-196.
    13. Juan F. Jimeno, 2017. "Unemployment and the role of supranational policies," IZA World of Labor, Institute of Labor Economics (IZA), pages 390-390, October.

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    More about this item

    Keywords

    labour flows; unemployment; labour market institutions; Great Recession;
    All these keywords.

    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
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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