This paper analyzes how the labor market adjusts to the Great Recession. To this aim, we use the data for Latvia, a country that have experienced one of the most severe recessions in Europe and a subsequent remarkable recovery. Employing longitudinal EU SILC data and a panel data set constructed by us from various waves of the Latvian Labour Force Survey (LLFS), we estimate worker transitions between labor market states. Labor market adjustment takes place predominantly at the extensive margin since it is driven by flows from permanent wage employment to unemployment. We also show that older, non-Latvian and above all less skilled workers are especially hard hit by the economic crisis. Estimated transitions between four mutually exclusive occupational groups demonstrate that downward mobility is very limited even during the Great Recession. Finally, wage regressions suggest that job mobility is not associated with increased labour productivity during and immediately after the crisis.

Lehmann, H., T., Razzolini e A., Zaiceva. "Worker flows and Labour Market Adjustment during the Great Recession: Evidence from a Large Shock" Working paper, DEMB WORKING PAPER SERIES, Dipartimento di Economia Marco Biagi - Università di Modena e Reggio Emilia, 2016. https://doi.org/10.25431/11380_1192357

Worker flows and Labour Market Adjustment during the Great Recession: Evidence from a Large Shock

Zaiceva, A.
2016

Abstract

This paper analyzes how the labor market adjusts to the Great Recession. To this aim, we use the data for Latvia, a country that have experienced one of the most severe recessions in Europe and a subsequent remarkable recovery. Employing longitudinal EU SILC data and a panel data set constructed by us from various waves of the Latvian Labour Force Survey (LLFS), we estimate worker transitions between labor market states. Labor market adjustment takes place predominantly at the extensive margin since it is driven by flows from permanent wage employment to unemployment. We also show that older, non-Latvian and above all less skilled workers are especially hard hit by the economic crisis. Estimated transitions between four mutually exclusive occupational groups demonstrate that downward mobility is very limited even during the Great Recession. Finally, wage regressions suggest that job mobility is not associated with increased labour productivity during and immediately after the crisis.
Aprile
Lehmann, H.; Razzolini, T.; Zaiceva, A.
Lehmann, H., T., Razzolini e A., Zaiceva. "Worker flows and Labour Market Adjustment during the Great Recession: Evidence from a Large Shock" Working paper, DEMB WORKING PAPER SERIES, Dipartimento di Economia Marco Biagi - Università di Modena e Reggio Emilia, 2016. https://doi.org/10.25431/11380_1192357
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11380/1192357
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