Transition dynamics in European labour markets during crisis and recovery

Monastiriotis, Vassilis ORCID: 0000-0003-3709-3119, Macchiarelli, Corrado and Lampropoulou, Nikolitsa ORCID: 0000-0001-7526-4287 (2019) Transition dynamics in European labour markets during crisis and recovery. Comparative Economic Studies, 61 (2). 213 - 234. ISSN 0888-7233

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Abstract

The crisis has resulted in a substantial rise in unemployment in Europe and a notable divergence in unemployment rates and labour market outcomes post-crisis. In this paper, we offer a detailed examination of the transitional dynamics underpinning changes in employment, unemployment and inactivity across the EU member states during the long period from before the crisis until the recent recovery (2004-2016). We document substantial differences in transitional dynamics across countries and disparate shifts in these over time. We also find systematic cross-country differences in the medium- and long-run trajectories of employment and unemployment generated by these dynamics, which can broadly be associated with differences in labour market institutions and models of labour market regulation and industrial relations (varieties of capitalism or production regimes). Applying a counterfactual analysis, we further document how altering the dynamics of labour market transitions may contribute to reducing significantly the levels of unemployment, and cross-country disparities in these, across the EU.

Item Type:	Article
Official URL:	https://link.springer.com/journal/41294
Additional Information:	© 2019 Association for Comparative Economic Studies
Divisions:	European Institute Economics Hellenic Observatory
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor
JEL classification:	O - Economic Development, Technological Change, and Growth > O5 - Economywide Country Studies > O52 - Europe J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J62 - Job, Occupational, and Intergenerational Mobility J - Labor and Demographic Economics > J8 - Labor Standards: National and International > J88 - Public Policy P - Economic Systems > P5 - Comparative Economic Systems > P51 - Comparative Analysis of Economic Systems
Date Deposited:	08 Mar 2019 14:12
Last Modified:	12 Dec 2024 01:41
URI:	http://eprints.lse.ac.uk/id/eprint/100233

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