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Labour Reallocation in Recession and Recovery: Evidence for Europe

Eric Bartelsman, Paloma Lopez-Garcia and Giorgio Presidente

National Institute Economic Review, 2019, vol. 247, R32-R39

Abstract: This paper builds upon Bartelsman, Lopez-Garcia, and Presidente (2018) and provides empirical evidence on the cyclical features of labour reallocation in a sample of European Union (EU) countries over the Great Recession and the slow recovery. The analysis makes use of cross-country micro-aggregated data on firm dynamics and productivity from release 6 of the ECB CompNet database. While productivity-enhancing reallocation generally is counter-cyclical, with a stronger effect providing a silver lining in downturns, it was weaker during the Great Recession in the EU, but reverted back to more normal patters in the most recent years.

Date: 2019
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