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Changes in Labour Market Transitions in Ireland over the Great Recession

Listed author(s):
  • Bergin, Adele

    ()

    (ESRI, Dublin)

  • Kelly, Elish

    ()

    (Economic and Social Research Institute, Dublin)

  • McGuinness, Seamus

    ()

    (Economic and Social Research Institute, Dublin)

This paper assesses the impact that the 2009 Great Recession had on individual's transitions to and from unemployment in Ireland. The rate of transition from unemployment to employment declined between 2006 and 2011, while the rate from employment to unemployment increased. The impact of some of the factors identified as contributing to the likelihood of a transition taking place were found to have changed over this period. In particular, young people are much less likely to exit unemployment, but at the same time they have a lower risk of becoming unemployed. Education has become an increasingly important factor in both supporting unemployment exits and reducing the risk of becoming unemployed since the recession. The scarring impact of long-term unemployment appears to have fallen substantially in Ireland post-recession. The results from a decomposition analysis show that compositional changes are largely unimportant in explaining the change in the transition rates between 2006 and 2011.

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File URL: http://ftp.iza.org/dp8401.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 8401.

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Length: 23 pages
Date of creation: Aug 2014
Publication status: published in: IZA Journal of European Labor Studies, 2015, 4 (9)
Handle: RePEc:iza:izadps:dp8401
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  1. Barrett, Alan & Kelly, Elish, 2010. "The Impact of Ireland's Recession on the Labour Market Outcomes of its Immigrants," IZA Discussion Papers 5218, Institute for the Study of Labor (IZA).
  2. Kelly, Elish & McGuinness, Seamus, 2013. "The Impact of the Recession on the Structure and Labour Market Success of Young NEET Individuals in Ireland," Papers WP465, Economic and Social Research Institute (ESRI).
  3. Elish Kelly & Seamus McGuinness & Philip J O’connell & David Haugh & Alberto GonzÁlez Pandiella, 2014. "Transitions In and Out of Unemployment among Young People in the Irish Recession," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 56(4), pages 616-634, December.
  4. Sue Maguire & Bart Cockx & Juan Dolado & Florentino Felgueroso & Marcel Jansen & Izabela Styczyńska & Elish Kelly & Seamus McGuinness & Werner Eichhorst & Holger Hinte & Ulf Rinne, 2013. "Youth unemployment," Intereconomics: Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 48(4), pages 196-235, July.
  5. McGuinness, Seamus & O'Connell, Philip J. & Kelly, Elish & Walsh, John R., 2011. "Activation in Ireland: An Evaluation of the National Employment Action Plan," Research Series, Economic and Social Research Institute (ESRI), number RS20, March.
  6. Conefrey, Thomas, 2011. "Unemployment and Labour Force Participation during the Recession," Economic Letters 04/EL/11, Central Bank of Ireland.
  7. McGinnity, Fran & Russell, Helen & Watson, Dorothy & Kingston, Gillian & Kelly, Elish, 2014. "Winners and Losers? The Equality Impact of the Great Recession in Ireland," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT265, March.
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