Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/208346
Authors: 
Anderton, Bob
Di Lupidio, Benedetta
Year of Publication: 
2019
Series/Report no.: 
ECB Working Paper No. 2312
Abstract: 
Macroeconomic studies suggest that employment-output elasticities in the euro area increased during the recovery from the crisis, especially in those countries that implemented reforms. In this paper, we use micro (individual-level) data from the Eurostat Labour Force Survey to investigate whether a similar change can be found at the micro level. We estimate the probabilities of worker flows across employment and unemployment in euro area countries during the period 2000-2015 in response to GDP growth, structural reforms and individual socio-demographic characteristics. We find evidence of a higher responsiveness of individual worker flows to output changes after the crisis, particularly for a group of countries which implemented significant reforms during the crisis. Indicators of labour and product market rigidities provide a statistically significant direct indication that such increased responsiveness may be explained by reforms. Finally, our results are not only driven by workers hired on temporary contracts, but also apply to permanent contracts.
Subjects: 
individual-level worker flows
linear probability model
labour market regulations
structural reforms
Great Recession
JEL: 
J21
J24
C25
K31
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-3881-5
Document Type: 
Working Paper

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