Is Unemployment Structural or Cyclical? Main Features of Job Matching in the EU after the Crisis
The paper sheds light on developments in labour market matching in the EU after the crisis. First, it analyses the main features of the Beveridge curve and frictional unemployment in EU countries, with a view to isolate temporary changes in the vacancy-unemployment relationship from structural shifts affecting the efficiency of labour market matching. Second, it explores the main drivers of job matching efficiency, notably with a view to gauge whether mismatches became more serious across skills, economic sectors, or geographical locations and to explore the role of the policy setting. It emerges that labour market matching deteriorated after the crisis, but with a great deal of heterogeneity across EU countries. Divergence across countries increased. Matching deteriorated most in countries most affected by current account reversals and the debt crisis. The lengthening of unemployment spells appears to be a significant driver of matching efficiency especially after the crisis, while skill and sectoral mismatches also played a role. Active labour market policies are associated with a higher matching efficiency and some support is found to the hypothesis that more generous unemployment benefits reduce matching efficiency.
|Author(s)||A. Arpaia, A. Kiss, A. Turrini|
|Year of publication||Sep, 2014|
|Journal||IZA Policy Paper|
|Volume, Number||2014, 91|
|Publisher||Forschungsinstitut zur Zukunft der Arbeit (IZA), Bonn|
|Website / Document||Visit|
English publication top 10
- The Quest for Work and Family Balance Using Flexible Work Arrangements, 2015. S.E. Forris.
- The double psychological contracts of temporary agency workers, 2014. M. Morf, A. Arnold, B. Staffelbach.
- Inter-firm job mobility and occupational transitions in Spain: are they related? 2014. A. Caparrós Ruiz.
- State Regulation, Economic Reform and Worker Rights: The Contingent Effects of China’s Labour Contract Law, 2014. T. Lan, J. Pickles, S. Zhu.
- Female labour market participation in Europe: novel evidence on trends and shaping factors, 2014. A. Cipollone, E. Patacchini, G. Vallanti.
- The Impact of Disasters on Independent Contractors: Victims of Circumstances, 2014. F. Lamm, N. McDonnel, R. Lamare.
- Self-perceived job insecurity across Europe over time: Does changing context matter? 2014. C. Lübke, M. Erlinghagen.
- Is Unemployment Structural or Cyclical? Main Features of Job Matching in the EU after the Crisis, 2014. A. Arpaia, A. Kiss, A. Turrini.
- Welfare States and the Need for Social Protection of Self-Employed Migrant Workers in the European Union, 2015. C. Thörnqvist.
- Italy's labour market reforms of 2012: did they reduce unemployment? 2016. G. Piazza, M. Myant.