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Changes in Labour Market Transitions in Ireland over the Great Recession

Author

Listed:
  • Bergin, Adele

    (ESRI, Dublin)

  • Kelly, Elish

    (ESRI, Dublin)

  • McGuinness, Seamus

    (Economic and Social Research Institute, Dublin)

Abstract

This paper assesses the impact that the 2009 Great Recession had on individual's transitions to and from unemployment in Ireland. The rate of transition from unemployment to employment declined between 2006 and 2011, while the rate from employment to unemployment increased. The impact of some of the factors identified as contributing to the likelihood of a transition taking place were found to have changed over this period. In particular, young people are much less likely to exit unemployment, but at the same time they have a lower risk of becoming unemployed. Education has become an increasingly important factor in both supporting unemployment exits and reducing the risk of becoming unemployed since the recession. The scarring impact of long-term unemployment appears to have fallen substantially in Ireland post-recession. The results from a decomposition analysis show that compositional changes are largely unimportant in explaining the change in the transition rates between 2006 and 2011.

Suggested Citation

  • Bergin, Adele & Kelly, Elish & McGuinness, Seamus, 2014. "Changes in Labour Market Transitions in Ireland over the Great Recession," IZA Discussion Papers 8401, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8401
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    References listed on IDEAS

    as
    1. Kelly, Elish & McGuinness, Seamus, 2013. "The Impact of the Recession on the Structure and Labour Market Success of Young NEET Individuals in Ireland," Papers WP465, Economic and Social Research Institute (ESRI).
    2. McGuinness, Seamus & O'Connell, Philip J. & Kelly, Elish & Walsh, John R., 2011. "Activation in Ireland: An Evaluation of the National Employment Action Plan," Research Series, Economic and Social Research Institute (ESRI), number RS20.
    3. Alan Barrett & Elish Kelly, 2012. "The Impact of Ireland’s Recession on the Labour Market Outcomes of its Immigrants [L’impact de la récession en Irlande sur le devenir de ses immigrés sur le marché du travail]," European Journal of Population, Springer;European Association for Population Studies, vol. 28(1), pages 91-111, February.
    4. Elish Kelly & Seamus McGuinness & Philip J O’connell & David Haugh & Alberto GonzÁlez Pandiella, 2014. "Transitions In and Out of Unemployment among Young People in the Irish Recession," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 56(4), pages 616-634, December.
    5. Sue Maguire & Bart Cockx & Juan Dolado & Florentino Felgueroso & Marcel Jansen & Izabela Styczyńska & Elish Kelly & Seamus McGuinness & Werner Eichhorst & Holger Hinte & Ulf Rinne, 2013. "Youth unemployment," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 48(4), pages 196-235, July.
    6. McGinnity, Fran & Russell, Helen & Watson, Dorothy & Kingston, Gillian & Kelly, Elish, 2014. "Winners and Losers? The Equality Impact of the Great Recession in Ireland," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT265.
    7. Conefrey, Thomas, 2011. "Unemployment and Labour Force Participation during the Recession," Economic Letters 04/EL/11, Central Bank of Ireland.
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    Cited by:

    1. Iva Tomic, 2016. "What drives youth unemployment in Europe?," Working Papers 1601, The Institute of Economics, Zagreb.

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    More about this item

    Keywords

    decomposition techniques; longitudinal data; Great Recession; labour market transitions; Ireland;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J88 - Labor and Demographic Economics - - Labor Standards - - - Public Policy

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