The Impact of the Economic Crisis on Labour and Education in Europe
In summer 2007, the US subprime crisis emerged and economic growth in industrialised countries started to slow down. The situation deteriorated after the default of Lehman Brothers in September 2008 and despite massive government interventions, the United States and most European countries slid into recession. We investigate the influence of the recent economic and financial crisis on European labour market perspectives and educational attainment decisions. Furthermore we disentangle the differential impacts of the crisis on various demographic subgroups. We find that young male workers have been hit hardest, while older workers and women have been partially protected by non-redeemable contracts and the fact that they work in sectors which have been less severely hit by the crisis. Focusing on the education sector, it seems that the demand for education increases because individuals try to circumvent the tight labour market, while the supply of education suffers because of the increased pressures on federal budgets in most European countries. However, we conclude that it is too early to make a definite statement because the full impact of the crisis on the education sector is still to come.
|Date of creation:||Jul 2010|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.oeaw.ac.at/vid/|
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.:
- Theresa Grafeneder-Weissteiner & Klaus Prettner, 2010.
"Agglomeration processes in ageing societies,"
1005, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
- Klaus Prettner & Alexia Prskawetz, 2009.
"Decreasing Fertility, Economic Growth and the Intergenerational Wage Gap,"
0906, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
- Klaus Prettner & Alexia Prskawetz, 2010. "Decreasing fertility, economic growth and the intergenerational wage gap," Empirica, Springer, vol. 37(2), pages 197-214, May.
- Michael Kuhn & Stefan Wrzaczek & Alexia Prskawetz & Gustav Feichtinger, 2010.
"Externalities in a Life-Cycle Model with Endogenous Survival,"
1001, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
- Kuhn, Michael & Wrzaczek, Stefan & Prskawetz, Alexia & Feichtinger, Gustav, 2011. "Externalities in a life cycle model with endogenous survival," Journal of Mathematical Economics, Elsevier, vol. 47(4-5), pages 627-641.
- Stefan Wrzaczek & Michael Kuhn & Alexia Prskawetz & Gustav Feichtinger, 2009. "The Reproductive Value in Distributed Optimal Control Models," Working Papers 0906, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
- Klaus Prettner, 2009.
"Population ageing and endogenous economic growth,"
0908, Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna.
When requesting a correction, please mention this item's handle: RePEc:vid:wpaper:1006. 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: (Frank Kolesnik)
If references are entirely missing, you can add them using this form.