IDEAS home Printed from https://ideas.repec.org/p/wfo/wpaper/y2025i708.html

The Effects of COVID-19 on Labour Market Matching in Austria: A Regional Perspective

Author

Listed:
  • Michael Christl

    (University of Loyola)

  • Aron Kiss

    (European Commission, DG Economic and Financial Affairs)

  • Wolfgang Nagl

    (Deggendorf Institute of Technology, Faculty of Applied Economics)

Abstract

This paper examines labour market matching in Austria from 2008 to 2024, focusing on the regional impact of the COVID-19 pandemic. Using monthly administrative data, we estimate Beveridge curves and matching efficiency across federal states. Our results show that while COVID-19 temporarily disrupted labour market matching, mismatch unemployment returned to pre-pandemic levels relatively quickly. However, this national recovery masks persistent regional differences. Many industrial regions experienced structural declines in matching efficiency starting in 2014-2015. These findings highlight the need for regionally targeted labour market and training policies to address lasting disparities and support post-pandemic recovery.

Suggested Citation

  • Michael Christl & Aron Kiss & Wolfgang Nagl, 2025. "The Effects of COVID-19 on Labour Market Matching in Austria: A Regional Perspective," WIFO Working Papers 708, WIFO.
    • Handle: RePEc:wfo:wpaper:y:2025:i:708
    as

    Download full text from publisher

    File URL: https://www.wifo.ac.at/?p=429520
    File Function: abstract
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cahuc, Pierre & Kramarz, Francis & Nevoux, Sandra, 2021. "The Heterogeneous Impact of Short-Time Work: From Saved Jobs to Windfall Effects," CEPR Discussion Papers 16168, C.E.P.R. Discussion Papers.
    2. Regis Barnichon & Andrew Figura, 2015. "Labor Market Heterogeneity and the Aggregate Matching Function," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(4), pages 222-249, October.
    3. Aron Kiss & Alessandro Turrini & Anneleen Vandeplas, 2022. "Slack vs. tightness in euro area labour markets: growing mismatch after COVID-19?," Quarterly Report on the Euro Area (QREA), Directorate General Economic and Financial Affairs (DG ECFIN), European Commission, vol. 21(2), pages 19-28, July.
    4. Áron Kiss & Maria Chiara Morandini & Alessandro Turrini & Anneleen Vandeplas, 2022. "Slack and Tightness: Making Sense of Post COVID-19 Labour Market Developments in the EU," European Economy - Discussion Papers 178, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    5. repec:iab:iabjlr:v:54:p:art.07 is not listed on IDEAS
    6. Adams-Prassl, Abi & Boneva, Teodora & Golin, Marta & Rauh, Christopher, 2020. "Inequality in the impact of the coronavirus shock: Evidence from real time surveys," Journal of Public Economics, Elsevier, vol. 189(C).
    7. Stefan Schiman, 2021. "Labor Supply Shocks and the Beveridge Curve: Empirical Evidence from EU Enlargement," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 40, pages 108-127, April.
    8. Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
    9. Michael Christl & Silvia Poli & Tine Hufkens & Andreas Peichl & Mattia Ricci, 2023. "The role of short-time work and discretionary policy measures in mitigating the effects of the COVID-19 crisis in Germany," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(4), pages 1107-1136, August.
    10. Michael Christl & Monika Köppl–Turyna & Dénes Kucsera, 2016. "Structural unemployment after the crisis in Austria," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-36, December.
    11. Robert Shimer, 2005. "The Cyclical Behavior of Equilibrium Unemployment and Vacancies," American Economic Review, American Economic Association, vol. 95(1), pages 25-49, March.
    12. Coskun, Sena & Dauth, Wolfgang & Gartner, Hermann & Stops, Michael & Weber, Enzo, 2024. "Working from Home Increases Work-Home Distances," IZA Discussion Papers 16855, IZA Network @ LISER.
    13. René Böheim & Michael Christl, 2022. "Mismatch unemployment in Austria: the role of regional labour markets for skills," Regional Studies, Regional Science, Taylor & Francis Journals, vol. 9(1), pages 208-222, December.
    14. Andrew Figura & Christopher J. Waller, 2022. "What does the Beveridge curve tell us about the likelihood of a soft landing?," FEDS Notes 2022-07-29, Board of Governors of the Federal Reserve System (U.S.).
    15. repec:spo:wpecon:info:hdl:2441/2ju03cb3kc9a3986bsibii70hd is not listed on IDEAS
    16. Gadi Barlevy & R. Jason Faberman & Bart Hobijn & Ayşegül Şahin, 2024. "The Shifting Reasons for Beveridge Curve Shifts," Journal of Economic Perspectives, American Economic Association, vol. 38(2), pages 83-106, Spring.
    17. Boele Bonthuis & Valerie Jarvis & Juuso Vanhala, 2016. "Shifts in euro area Beveridge curves and their determinants," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-17, December.
    18. repec:iab:iabjlr:v:54:i:1:p:art.7 is not listed on IDEAS
    19. repec:spo:wpmain:info:hdl:2441/2ju03cb3kc9a3986bsibii70hd is not listed on IDEAS
    20. repec:iab:iabdpa:20246 is not listed on IDEAS
    21. Christl, Michael, 2020. "A Beveridge curve decomposition for Austria: did the liberalisation of the Austrian labour market shift the Beveridge curve?," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 54, pages 1-007.
    22. Figura, Andrew & Waller, Chris, 2024. "What does the beveridge curve tell us about the likelihood of soft landings?," Journal of Economic Dynamics and Control, Elsevier, vol. 169(C).
    23. Dale T. Mortensen & Christopher A. Pissarides, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(3), pages 397-415.
    24. Sabine Klinger & Thomas Rothe, 2012. "The Impact of Labour Market Reforms and Economic Performance on the Matching of the Short‐term and the Long‐term Unemployed," Scottish Journal of Political Economy, Scottish Economic Society, vol. 59(1), pages 90-114, February.
    25. Matthew J. Notowidigdo, 2020. "The Incidence of Local Labor Demand Shocks," Journal of Labor Economics, University of Chicago Press, vol. 38(3), pages 687-725.
    26. Marcelo Veracierto, 2011. "Worker flows and matching efficiency," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 35(Q IV), pages 147-169.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luis Alberiko A. Gil-Alana & María Jesús González-Blanch & Carlos Poza, 2025. "Labour market mismatches in G7 countries: a fractional integration approach," Applied Economics, Taylor & Francis Journals, vol. 57(7), pages 736-752, February.
    2. Lisauskaite, Elena, 2022. "Matching Efficiency and Heterogeneous Workers in the UK," IZA Discussion Papers 15610, IZA Network @ LISER.
    3. Klinger, Sabine & Weber, Enzo, 2014. "Decomposing Beveridge curve dynamics by correlated unobserved components: The impact of labour market reforms in Germany," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100499, Verein für Socialpolitik / German Economic Association.
    4. Kohlbrecher, Britta & Merkl, Christian & Nordmeier, Daniela, 2016. "Revisiting the matching function," Journal of Economic Dynamics and Control, Elsevier, vol. 69(C), pages 350-374.
    5. René Böheim & Michael Christl, 2022. "Mismatch unemployment in Austria: the role of regional labour markets for skills," Regional Studies, Regional Science, Taylor & Francis Journals, vol. 9(1), pages 208-222, December.
    6. Sedláček, Petr, 2014. "Match efficiency and firms' hiring standards," Journal of Monetary Economics, Elsevier, vol. 62(C), pages 123-133.
    7. Sabine Klinger & Enzo Weber, 2016. "Decomposing Beveridge Curve Dynamics By Correlated Unobserved Components," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(6), pages 877-894, December.
    8. René Böheim & Michael Christl, 2021. "Mismatch unemployment in Austria," Economics working papers 2021-06, Department of Economics, Johannes Kepler University Linz, Austria.
    9. Kohlbrecher, Britta & Merkl, Christian, 2022. "Business cycle asymmetries and the labor market," Journal of Macroeconomics, Elsevier, vol. 73(C).
    10. Christl, Michael, 2020. "A Beveridge curve decomposition for Austria: did the liberalisation of the Austrian labour market shift the Beveridge curve?," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 54, pages 1-007.
    11. Carrillo-Tudela, Carlos & Launov, Andrey & Robin, Jean-Marc, 2021. "The fall in german unemployment: A flow analysis," European Economic Review, Elsevier, vol. 132(C).
    12. Gehrke, Britta & Weber, Enzo, 2018. "Identifying asymmetric effects of labor market reforms," European Economic Review, Elsevier, vol. 110(C), pages 18-40.
    13. Josué Diwambuena & Raquel Fonseca & Stefan Schubert, 2021. "Italian Labour Frictions and Wage Rigidities in an Estimated DSGE," BEMPS - Bozen Economics & Management Paper Series BEMPS88, Faculty of Economics and Management at the Free University of Bozen.
    14. Thomas A. Lubik, 2013. "The shifting and twisting Beveridge curve: an aggregate perspective," Working Paper 13-16, Federal Reserve Bank of Richmond.
    15. Rich Ryan, 2024. "Unemployment volatility: When workers pay costs upon accepting jobs," International Journal of Economic Theory, The International Society for Economic Theory, vol. 20(3), pages 303-333, September.
    16. Barnichon, Régis & Shapiro, Adam Hale, 2024. "Phillips meets Beveridge," Journal of Monetary Economics, Elsevier, vol. 148(S).
    17. Wesselbaum, Dennis, 2019. "Jobless recoveries: The interaction between financial and search frictions," Journal of Macroeconomics, Elsevier, vol. 61(C), pages 1-1.
    18. Wilhelm, Stefan, 2023. "Efficiency of short-time work schemes and the role of monetary policy," Journal of Macroeconomics, Elsevier, vol. 78(C).
    19. Carlsson, Mikael & Eriksson, Stefan & Gottfries, Nils, 2006. "Testing Theories of Job Creation: Does Supply Create Its Own Demand?," Working Paper Series 194, Sveriges Riksbank (Central Bank of Sweden).
    20. Thomas A. Lubik & Michael U. Krause, 2004. "On-the-Job Search and Business Cycle Dynamics," Econometric Society 2004 North American Summer Meetings 489, Econometric Society.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wfo:wpaper:y:2025:i:708. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Mayr (email available below). General contact details of provider: https://edirc.repec.org/data/wifooat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.