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

Author

Listed:
  • Eichhorst, Werner

    (IZA)

  • Feil, Michael

    (Institute for Employment Research (IAB), Nuremberg)

  • Marx, Paul

    (University of Bonn)

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.

Suggested Citation

  • Eichhorst, Werner & Feil, Michael & Marx, Paul, 2010. "Crisis, What Crisis? Patterns of Adaptation in European Labor Markets," IZA Discussion Papers 5045, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5045
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    Keywords

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

    JEL classification:

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

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