Occupational regulation and labour market fluidity in ten European Countries

Zoltán Hermann () and Júlia Varga ()
Additional contact information
Zoltán Hermann: HUN-REN Centre for Economic and Regional Studies; Corvinus University of Budapest
Júlia Varga: HUN-REN Centre for Economic and Regional Studies

No 2418, KRTK-KTI WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies

Abstract: This paper examines the impact of occupational regulation, a labour market institution affecting many workers, on labour market fluidity in Europe. Using data from 10 European countries, we estimate the effect of occupational regulation on occupational mobility (transition to another occupation) and job loss (transition from employment to unemployment). By leveraging the variation in regulation across countries within an occupation, we identify the regulation effect using a two-way fixed effects approach. We also compare the effects of more and less stringent forms of regulation. The results show that occupational regulation substantially decreases occupational mobility, while its effect on job loss is ambiguous. More stringent regulation (occupational licensing) has a more substantial effect than weaker requirements.

Keywords: occupational regulation; occupation licensing; occupation mobility; labour market fluidity; labour market flexibility (search for similar items in EconPapers)
JEL-codes: C01 J08 J44 J62 (search for similar items in EconPapers)
Date: 2024-11
References: Add references at CitEc
Citations:

Downloads: (external link)
https://kti.krtk.hu/wp-content/uploads/2024/11/KRTKKTIWP202418.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:has:discpr:2418

Access Statistics for this paper

More papers in KRTK-KTI WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies Contact information at EDIRC.
Bibliographic data for series maintained by Nora Horvath ( this e-mail address is bad, please contact ).