Getting on the job ladder: The policy drivers of hiring transitions

Orsetta Causa, Michael Abendschein, Nhung Luu and Maria Chiara Cavalleri

No 1710, OECD Economics Department Working Papers from OECD Publishing

Abstract: This paper delivers new evidence for European countries on the role of a wide range of policies for workers’ mobility in terms of hiring transitions into jobs, with an emphasis on differences across socio-economic groups. Labour market transitions are relevant in the current context where the ongoing recovery from the COVID-19 crisis is characterised by labour shortages and at the same time still low employment in a number of countries. The analysis focuses on the probability to transition from unemployment and selected forms of inactivity (e.g. fulfilling domestic tasks, studying) to jobs and from one job to another. Results of this work show the strong association between hiring flows and the business cycle with specific patterns during recoveries, recessions and expansions. The analysis further reveals that a broad range of policies influence hiring transitions, such as labour market policies, taxes and social support programmes but also product market regulations and regulations affecting certain professions. Country-specific priorities will vary depending on context, challenges and social preferences. Yet common policy objectives at the current recovery context are likely to improve the job prospects of the non-employed, especially youth, low-skilled and women, to help the recovery, foster reallocation and to address labour shortages.

Keywords: business cycle; COVID-19; cross-country data; differences across socio-economic groups; job mobility; labour reallocation; labour transitions; policy analysis; worker flows (search for similar items in EconPapers)
JEL-codes: E24 E32 J2 J31 J62 (search for similar items in EconPapers)
Date: 2022-04-19
New Economics Papers: this item is included in nep-lma and nep-mac
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1787/0304c673-en (text/html)

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:oec:ecoaaa:1710-en

Access Statistics for this paper

More papers in OECD Economics Department Working Papers from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ().