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Euro area labour markets and the crisis

Author

Listed:
  • Druant, Martine
  • Vanhala, Juuso
  • Ktoris, Michalis
  • Jarvis, Valerie
  • Bouchet, Muriel
  • Budnik, Katarzyna
  • Childs, Claire
  • Kuttner, Nicole
  • Spooner, Magdalena
  • De Mulder, Jan
  • Bonthuis, Boele
  • Stiglbauer, Alfred
  • Linehan, Suzanne
  • Schaumann, Heidi
  • Nicolitsas, Daphne
  • Radowski, Daniel
  • Duarte, Cláudia Filipa
  • Maria, José R.
  • Lamo, Ana
  • Hoeberichts, Marco M.
  • Aranki, Ted
  • Sonderhof, Katja
  • Solcanska, Helena
  • Gertler, Pavel
  • Mogliani, Matteo
  • Veiga, Cindy
  • Meyler, Aidan
  • Fraisse, Henri
  • Zizza, Roberta
  • Sapiano, Ian
  • Parlevliet, Jante
  • Zerafa, Sandra
  • Izquierdo, Mario
  • Anderton, Robert
  • Gómez-Salvador, Ramón
  • Soosaar, Orsolya
  • Viilmann, Natalja
  • Jesenko, Manca
  • Puente, Sergio
  • Fernandez, Cristina
  • Verdugo, Gregory
  • Momferatou, Daphne
  • Serafini, Roberta
  • Ramskogler, Paul

Abstract

Between the start of the economic and financial crisis in 2008, and early 2010, almost four million jobs were lost in the euro area. Employment began to rise again in the first half of 2011, but declined once more at the end of that year and remains at around three million workers below the pre-crisis level. However, in comparison with the severity of the fall in GDP, employment adjustment has been relatively muted at the aggregate euro area level, mostly due to significant labour hoarding in several euro area countries. While the crisis has, so far, had a more limited or shorter-lived impact in some euro area countries, in others dramatic changes in employment and unemployment rates have been observed and, indeed, more recent data tend to show the effects of a re-intensification of the crisis. The main objectives of this report are: (a) to understand the notable heterogeneity in the adjustment observed across euro area labour markets, ascertaining the role of the various shocks, labour market institutions and policy responses in shaping countries JEL Classification: E42, F15, F33, F41

Suggested Citation

  • Druant, Martine & Vanhala, Juuso & Ktoris, Michalis & Jarvis, Valerie & Bouchet, Muriel & Budnik, Katarzyna & Childs, Claire & Kuttner, Nicole & Spooner, Magdalena & De Mulder, Jan & Bonthuis, Boele &, 2012. "Euro area labour markets and the crisis," Occasional Paper Series 138, European Central Bank.
  • Handle: RePEc:ecb:ecbops:2012138
    Note: 1725816
    as

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    File URL: https://www.ecb.europa.eu//pub/pdf/scpops/ecbocp138.pdf
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    References listed on IDEAS

    as
    1. Robert J. Gordon, 1997. "The Time-Varying NAIRU and Its Implications for Economic Policy," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 11-32, Winter.
    2. Philip Du Caju & Erwan Gautier & Daphne Momferatu & Melanie Ward-Warmedinger, 2009. "Institutional Features of Wage Bargaining in 23 European Countries, the US and Japan," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 12(2), pages 57-108, Winter.
    3. Daniel Chiquiar & Gordon H. Hanson, 2005. "International Migration, Self-Selection, and the Distribution of Wages: Evidence from Mexico and the United States," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 239-281, April.
    4. P. McAdam & K. Mc Morrow, 1999. "The NAIRU Concept - Measurement uncertainties, hysteresis and economic policy role," European Economy - Economic Papers 2008 - 2015 136, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Verdugo, Gregory, 2016. "Real wage cyclicality in the Eurozone before and during the Great Recession: Evidence from micro data," European Economic Review, Elsevier, vol. 82(C), pages 46-69.
    2. Masuch, Klaus & Anderton, Robert & Setzer, Ralph & Benalal, Nicholai, 2018. "Structural policies in the euro area," Occasional Paper Series 210, European Central Bank.
    3. Dany-Knedlik, Geraldine & Holtemöller, Oliver, 2017. "Inflation dynamics during the financial crisis in Europe: Cross-sectional identification of long-run inflation expectations," IWH Discussion Papers 10/2017, Halle Institute for Economic Research (IWH).

    More about this item

    Keywords

    crisis; employment; euro area countries; Labour Demand; labour supply; participation; unemployment;

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • F15 - International Economics - - Trade - - - Economic Integration
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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