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Labour Market Dynamics and Worker Heterogeneity during the Great Recession: Evidence from Europe

Ronald Bachmann, Peggy Bechara (née David) (), Anica Kramer () and Sylvi Rzepka

No 9233, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Using harmonized micro data, this paper investigates the effects of the early phase (2008-10) of the recent economic crisis on transitions between labour market states in Europe. Our analysis focuses on individual heterogeneity, on the type of employment contract, and on cross-country differences. Our analysis shows that specific worker groups, such as men and young persons, were particularly strongly hit by the crisis. Furthermore, more transitions from employment, and especially temporary employment to unemployment, were the main factor behind the rise in unemployment; while reduced unemployment outflows did not contribute substantially to the increase in unemployment during the early phase of the crisis.

Keywords: worker heterogeneity; Markov transition matrices; labour market transitions; recession (search for similar items in EconPapers)
JEL-codes: E24 J6 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2015-07
New Economics Papers: this item is included in nep-eur, nep-lab and nep-mac
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Citations: View citations in EconPapers (21) Track citations by RSS feed

Published - IZA Journal of European Labor Studies, 2017, 4:19 (open access)

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Related works:
Journal Article: Labour market dynamics and worker heterogeneity during the Great Recession – Evidence from Europe (2015) Downloads
Working Paper: Labour Market Dynamics and Worker Heterogeneity During the Great Recession – Evidence from Europe (2014) Downloads
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