What’s going on behind the euro area Beveridge curve(s)?
This paper studies unemployment and vacancy developments in the euro area at the aggregate and country level over the Great Recession. The recent crisis has had a heterogeneous impact on euro area labour markets, leading to significant employment losses, especially in some sectors. The extent to which the rise in unemployment and particularly long-term unemployment reflects growing mismatch across euro area labour markets is one of the biggest questions facing euro area labour market policy makers. This paper attempts to shed light on this question by analysing developments in euro area Beveridge curves over the past 20 years, at both the aggregate level and on a disaggregated basis for all euro area countries. Using a simple model of Beveridge curve developments, we test for statistical significance of observed developments and find a significant shift in the euro area Beveridge curve since the onset of the crisis, but considerable heterogeneity at the country level. At the extremes, country level differences include a significant outward shift in the Beveridge curve for Spain and France, an inward shift for Germany, while some euro area countries reveal no significant changes in the responsiveness of unemployment to vacancy developments over the course of the crisis. We include an examination of factors underlying the observed developments across the countries. JEL Classification: J62, J63, E24, E32
|Date of creation:||Sep 2013|
|Date of revision:|
|Contact details of provider:|| Postal: 60640 Frankfurt am Main, Germany|
Phone: +49 69 1344 0
Fax: +49 69 1344 6000
Web page: http://www.ecb.europa.eu/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Regis Barnichon & Andrew Figura, 2011. "What drives matching efficiency? a tale of composition and dispersion," Finance and Economics Discussion Series 2011-10, Board of Governors of the Federal Reserve System (U.S.).
- Mary C. Daly & Bart Hobijn & Robert G. Valletta, 2011.
"The recent evolution of the natural rate of unemployment,"
Working Paper Series
2011-05, Federal Reserve Bank of San Francisco.
- Daly, Mary C. & Hobijn, Bart & Valletta, Robert G., 2011. "The Recent Evolution of the Natural Rate of Unemployment," IZA Discussion Papers 5832, Institute for the Study of Labor (IZA).
- Michael W. L. Elsby & Jennifer C. Smith & Jonathan Wadsworth, 2011.
"The role of worker flows in the dynamics and distribution of UK unemployment,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 27(2), pages 338-363.
- Elsby, Michael W.L. & Smith, Jennifer C. & Wadsworth, Jonathan, 2011. "The role of worker flows in the dynamics and distribution of UK unemployment," The Warwick Economics Research Paper Series (TWERPS) 962, University of Warwick, Department of Economics.
- Elsby, Michael & Smith, Jennifer C. & Wadsworth, Jonathan, 2011. "The Role of Worker Flows in the Dynamics and Distribution of UK Unemployment," IZA Discussion Papers 5784, Institute for the Study of Labor (IZA).
- Michael W. L. Elsby & Jennifer C. Smith & Jonathan Wadsworth, 2011. "The Role of Worker Flows in the Dynamics and Distribution of UK Unemployment," CEP Discussion Papers dp1058, Centre for Economic Performance, LSE.
- Diamond, Peter A. & Sahin, Aysegul, 2014.
"Shifts in the Beveridge curve,"
687, Federal Reserve Bank of New York.
- Regis Barnichon & Michael Elsby & Bart Hobijn & Aysegül Sahin, 2010.
"Which industries are shifting the Beveridge curve?,"
Working Paper Series
2010-32, Federal Reserve Bank of San Francisco.
- Regis Barnichon & Michael Elsby & Bart Hobijn & Aysegul Sahin, 2011. "Which Industries are shifting the Beveridge Curve?," Tinbergen Institute Discussion Papers 11-157/3, Tinbergen Institute.
- Nicolaas Groenewold, 2003. "Long-Run Shifts of the Beveridge Curve and the Frictional Unemployment Rate in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(1), pages 65-82, March.
- Howard J. Wall & Gylfi Zoega, 2001.
"The British Beveridge curve: a tale of ten regions,"
2001-007, Federal Reserve Bank of St. Louis.
- Wall, Howard J & Zoega, Gylfi, 2002. " The British Beveridge Curve: A Tale of Ten Regions," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(3), pages 261-80, July.
- Wall, Howard & Zoega, Gylfi, 1997. "The British Beveridge Curve: A Tale of Ten Regions," CEPR Discussion Papers 1771, C.E.P.R. Discussion Papers.
- Reinhart, Carmen M. & Rogoff, Kenneth, 2009.
"The Aftermath of Financial Crises,"
CEPR Discussion Papers
7209, C.E.P.R. Discussion Papers.
- Reinhart, Carmen & Rogoff, Kenneth, 2008.
"Las secuelas de las crisis financieras
[The aftermath of financial crisis]," MPRA Paper 13695, University Library of Munich, Germany.
- Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "The Aftermath of Financial Crises," NBER Working Papers 14656, National Bureau of Economic Research, Inc.
- Reinhart, Carmen M. & Rogoff, Kenneth S., 2009. "The Aftermath of Financial Crises," Scholarly Articles 11129155, Harvard University Department of Economics.
- Reinhart, Carmen & Rogoff, Kenneth, 2008. "Las secuelas de las crisis financieras
- Olivier Jean Blanchard & Peter Diamond, 1994.
"Ranking, Unemployment Duration, and Wages,"
Review of Economic Studies,
Oxford University Press, vol. 61(3), pages 417-434.
- Olivier Jean Blanchard & Peter Diamond, 1990. "Ranking, Unemployment Duration, and Wages," NBER Working Papers 3387, National Bureau of Economic Research, Inc.
- Blanchard, O.J. & Diamond, P., 1990. "Ranking, Unemployment Duration, And Wages," Working papers 546, Massachusetts Institute of Technology (MIT), Department of Economics.
- Pissarides, C A, 1979. "Job Matchings with State Employment Agencies and Random Search," Economic Journal, Royal Economic Society, vol. 89(356), pages 818-33, December.
- Michael R. Darby & John C. Haltiwanger & Mark W. Plant, 1985.
"Unemployment-Rate Dynamics and Persistent Unemployment Under Rational Expectations,"
NBER Working Papers
1558, National Bureau of Economic Research, Inc.
- Darby, Michael R & Haltiwanger, John C & Plant, Mark W, 1985. "Unemployment Rate Dynamics and Persistent Unemployment under Rational Expectations," American Economic Review, American Economic Association, vol. 75(4), pages 614-37, September.
- Michael R. Darby & John Haltiwanger & Mark Plant, 1984. "Unemployment-Rate Dynamics and Persistent Unemployment Under RAtional Expectations," UCLA Economics Working Papers 339, UCLA Department of Economics.
- Shigeru Fujita & Garey Ramey, 2006.
"The cyclicality of job loss and hiring,"
06-17, Federal Reserve Bank of Philadelphia.
- Ramey, Garey & Shigeru Fujita, 2006. "The Cyclicality of Job Loss and Hiring," University of California at San Diego, Economics Working Paper Series qt4nz8p839, Department of Economics, UC San Diego.
- Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, March.
- Robert G. Valletta, 2005. "Why has the U.S. Beveridge curve shifted back? new evidence using regional data," Working Paper Series 2005-25, Federal Reserve Bank of San Francisco.
- Henry S. Farber, 2012. "Unemployment in the Great Recession: Did the Housing Market Crisis Prevent the Unemployed from Moving to Take Jobs?," American Economic Review, American Economic Association, vol. 102(3), pages 520-25, May.
- Julen ESTEBAN-PRETEL & FUJIMOTO Junichi, 2011. "Life-Cycle Search, Match Quality and Japan's Labor Flow," Discussion papers 11041, Research Institute of Economy, Trade and Industry (RIETI).
When requesting a correction, please mention this item's handle: RePEc:ecb:ecbwps:20131586. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Official Publications)
If references are entirely missing, you can add them using this form.