Labour Market Dynamics and Worker Heterogeneity during the Great Recession: Evidence from Europe

42 Pages Posted: 4 Sep 2015

See all articles by Ronald Bachmann

Ronald Bachmann

Rhine-Westphalia Institute for Economic Research (RWI-Essen)

Peggy Bechara

RWI Essen

Anica Kramer

Rhine-Westphalia Institute for Economic Research (RWI-Essen); Ruhr University of Bochum

Sylvi Rzepka

Rhine-Westphalia Institute for Economic Research (RWI-Essen)

Abstract

Using harmonized micro data, this paper investigates the effects of the early phase (2008-10) of the recent economic crisis on transitions between labour market states in Europe. Our analysis focuses on individual heterogeneity, on the type of employment contract, and on cross-country differences. Our analysis shows that specific worker groups, such as men and young persons, were particularly strongly hit by the crisis. Furthermore, more transitions from employment, and especially temporary employment to unemployment, were the main factor behind the rise in unemployment; while reduced unemployment outflows did not contribute substantially to the increase in unemployment during the early phase of the crisis.

Keywords: recession, labour market transitions, Markov transition matrices, worker heterogeneity

JEL Classification: J6, E24

Suggested Citation

Bachmann, Ronald and Bechara, Peggy and Kramer, Anica and Rzepka, Sylvi, Labour Market Dynamics and Worker Heterogeneity during the Great Recession: Evidence from Europe. IZA Discussion Paper No. 9233. Available at SSRN: https://ssrn.com/abstract=2655274

Ronald Bachmann (Contact Author)

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

Peggy Bechara

RWI Essen ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

Anica Kramer

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

Ruhr University of Bochum ( email )

Universit├Ątsstra├če 150
Bochum, NRW 44780
Germany

Sylvi Rzepka

Rhine-Westphalia Institute for Economic Research (RWI-Essen) ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

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