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Worker flows and reallocation during the recovery

Author

Listed:
  • Basso, Gaetano
  • Depalo, Domenico
  • Lattanzio, Salvatore
Abstract
Exploiting very rich administrative data covering the period from January 2018 until December 2021, this study analyses the individual employment trajectories of a large random sample of Italian workers during the pandemic and the subsequent recovery, comparing them with similar individuals in previous years. To understand the heterogeneous impact of the crisis on the workforce, we split the sample based on workers’ labour market status in the first four months of 2020: (i) those continuously employed, (ii) those who lost their job, and (iii) those not employed (either new entrants or with previous work experience). While workers in the first group were more likely to keep their job during the pandemic than in the past, the others faced scarce employment prospects for a prolonged period. The probability to find a job decreased sharply for labour market entrants, amplifying pre-existing differences. Finally, we do not find evidence of significant cross-firm or cross-sectoral reallocation.

Suggested Citation

  • Basso, Gaetano & Depalo, Domenico & Lattanzio, Salvatore, 2023. "Worker flows and reallocation during the recovery," Labour Economics, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:labeco:v:83:y:2023:i:c:s092753712300074x
    DOI: 10.1016/j.labeco.2023.102399
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    Cited by:

    1. Domenico Depalo & Salvatore Lattanzio, 2023. "The increase in earnings inequality and volatility in Italy: the role and persistence of atypical contracts," Questioni di Economia e Finanza (Occasional Papers) 801, Bank of Italy, Economic Research and International Relations Area.
    2. Depalo, Domenico, 2023. "Should the Daylight Saving Time be abolished? Evidence from work accidents in Italy," Economic Modelling, Elsevier, vol. 128(C).
    3. Antonio Dalla Zuanna & Davide Dottori & Elena Gentili & Salvatore Lattanzio, 2024. "An assessment of occupational exposure to artificial intelligence in Italy," Questioni di Economia e Finanza (Occasional Papers) 878, Bank of Italy, Economic Research and International Relations Area.
    4. 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).

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    More about this item

    Keywords

    Employment; Job mobility; Turnover; COVID-19 pandemic;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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