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Crisis, What Crisis? Patterns of Adaptation in European Labor Markets

Author

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  • Werner Eichhorst
  • Michael Feil
  • Paul Marx

Abstract

The current crisis, while of a global nature, has affected national labor markets to a varying extent. While some countries have experienced a steep increase in unemployment, employment in other developed economies has not fallen in parallel with a significant decline in GDP. Our analysis shows that labor market institutions frequently used to study employment performance can explain the development of unemployment in the situation of crisis in some clusters of countries much better than in others. One major factor to be incorporated in capturing national variations is the role of internal flexibility, in particular working time adjustment. This calls for a broader concept of labor market flexibility which takes into account different channels of adjustment. Comment by Antje Mertens.

Suggested Citation

  • Werner Eichhorst & Michael Feil & Paul Marx, 2010. "Crisis, What Crisis? Patterns of Adaptation in European Labor Markets," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 61(Supplemen), pages 29-64.
    • Handle: RePEc:aeq:aeqaeq:v61_y2010_is_q5_p29-64
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    Keywords

    Labor market institutions; internal flexibility; employment protection; economic crisis;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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