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Shifting the Beveridge curve: What affects labour market matching?

Elva Bova, Joao Jalles () and Christina Kolerus

International Labour Review, 2018, vol. 157, issue 2, 267-306

Abstract: This article explores short‐run determinants of the matching between labour demand and supply by identifying shifts in the Beveridge curves for 12 OECD countries between 2000Q1 and 2013Q4. Using three complementary methodologies (visual examination, cointegration techniques and non‐linear estimations), we find that labour force growth and employment protection legislation reduce the likelihood of outward shifts, and the higher the share of employees with intermediate levels of education and the long‐term unemployment, the more difficult the matching process. Active labour market policies (such as incentives for start‐ups or job‐sharing programmes) could facilitate matching, while passive policies (unemployment benefits or labour taxation) make matching significantly more difficult.

Date: 2018
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https://doi.org/10.1111/ilr.12046

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Working Paper: Shifting the Beveridge Curve: What Affects Labor Market Matching? (2016) Downloads
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