Gross job flows and institutions in Europe

Ramon Gomez-Salvador, Julian Messina and Giovanna Vallanti

No 318, Working Paper Series from European Central Bank

Abstract: We examine job flows in the 1990s for a sample of 13 European countries. By using a dataset of continuing firms that covers all sectors, we find firm characteristics to be important determinants of job flows, with smaller and younger firms within services typically having a larger degree of job turnover. Once controlled for firm and sectoral effects, the role of institutions in the dynamics of job creation and destruction is examined. As expected, employment protection is found to reduce job flows. Similarly, countries with higher unemployment benefits and more coordinated wage bargaining systems are characterised by lower job flows. JEL Classification: J23, J60

Keywords: Gross Job Flows; labour market institutions. (search for similar items in EconPapers)
Date: 2004-03
Note: 375755
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Citations: View citations in EconPapers (107)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2004318

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