Worker Flows in the European Union During the Great Recession

49 Pages Posted: 29 Oct 2015

See all articles by Jose Maria Casado

Jose Maria Casado

Banco de España

Cristina Fernández

Banco de España

Juan F. Jimeno

Banco de España - Research Department; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Date Written: October 28, 2015

Abstract

We firstly measure the contribution of worker flows across employment, unemployment, and non-participation to the change in unemployment in eleven EU countries during the period 2006-2012, paying special attention to which socio-demographic groups in each of the countries were most affected by job creation and job destruction during the crisis. We find that age, to a greater extent than educational attainment, is the main determinant of flows from employment into unemployment, particularly in those countries where unemployment increased most. Secondly, we highlight some institutional features of the labour market (employment protection legislation, unemployment insurance and the incidence of active labour market policies) that help explain the cross-country differences in flows between employment and unemployment and in their socio-demographic composition. Finally, we examine whether the crisis has led to some employment reallocation across sectors, finding that, so far, there is no clear evidence in favour of cleansing effects.

Keywords: labour flows, unemployment, labour market institutions, Great Recession

JEL Classification: J6, E24, C25

Suggested Citation

Casado, Jose Maria and Fernández, Cristina and Jimeno, Juan F., Worker Flows in the European Union During the Great Recession (October 28, 2015). Banco de Espana Working Paper No. 1529. Available at SSRN: https://ssrn.com/abstract=2682414 or http://dx.doi.org/10.2139/ssrn.2682414

Jose Maria Casado (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Cristina Fernández

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Juan F. Jimeno

Banco de España - Research Department ( email )

Alcala 48
28014 Madrid
Spain

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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