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The Ins and Outs of European Unemployment

Barbara Petrongolo and Christopher Pissarides ()

No 3315, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper we study the contribution of inflows and outflows to the dynamics of unemployment in three European countries, the United Kingdom, France and Spain. We compare performance in these three countries making use of both administrative and labor force survey data. We find that the impact of the 1980s reforms in Britain is evident in the contributions of the inflow and outflow rates. The inflow rate became a bigger contributor after the mid 1980s, although its significance subsided again in the late 1990s and 2000s. In France the dynamics of unemployment are driven virtually entirely by the outflow rate, which is consistent with a regime with strict employment protection legislation. In Spain, however, both rates contribute significantly to the dynamics, very likely as a consequence of the prominence of fixed-term contracts since the late 1980s.

Keywords: job separation rates; job finding rates; unemployment dynamics (search for similar items in EconPapers)
JEL-codes: E24 E32 J6 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-lab and nep-mac
Date: 2008-01
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Published in: American Economic Review, 2008, 98 (2), 256-262

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Related works:
Journal Article: The Ins and Outs of European Unemployment (2008) Downloads
Working Paper: The Ins and Outs of European Unemployment (2008) Downloads
Working Paper: The Ins and Outs of European Unemployment (2008) Downloads
Working Paper: The ins and outs of European unemployment (2008) Downloads
Working Paper: The ins and outs of European unemployment (2008) Downloads
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