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Worker reallocation in Italy and Spain after the COVID-19 pandemic

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  • Gómez, Ángel Luis
  • Lattanzio, Salvatore

Abstract

We provide evidence on the evolution of worker reallocation in Italy and Spain during the pandemic. In both countries, job-to-job transition rates fell in 2020 but improved in 2021 in aggregate. We then focus on cross-sectoral mobility following job separation. In Italy, we find a modest increase in sectoral reallocation in 2020, reaching 4 percentage points at the end of 2021—around 11 percent of the pre-pandemic average reallocation rate. In contrast, there are no statistically significant differences in the reallocation probability with respect to the pre-pandemic average in Spain.

Suggested Citation

  • Gómez, Ángel Luis & Lattanzio, Salvatore, 2024. "Worker reallocation in Italy and Spain after the COVID-19 pandemic," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 5(1).
    • Handle: RePEc:eee:lajcba:v:5:y:2024:i:1:s2666143823000261
    DOI: 10.1016/j.latcb.2023.100105
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    More about this item

    Keywords

    COVID-19; Sectoral employment; Worker reallocation; Job-to-job transitions;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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