Séminaire GREDEG - Robert Anderton (European Central Bank, Frankfurt)

Effects of labour and product market regulation on worker flows: evidence for the euro area using microdata
Quand ? Le 13-06-2019,
de 14:00 à 15:30
Où ? Salle Picasso - GREDEG
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Title : Effects of labour and product market regulation on worker flows: evidence for the euro area using microdata

Abstract : Macroeconomic studies suggest that employment-output elasticities in the euro area increased during the recovery from the crisis, especially in those countries that implemented labour market reforms. In this paper, we use micro (individual-level) data from the Eurostat Labour Force Survey to investigate whether a similar change can be found at the micro level.  We estimate the probability of individual workers in euro area countries flowing across employment and unemployment during the period 2000-2015 in response to a number of variables such as GDP dynamics, structural reforms and a wide range of worker-level socio-demographic characteristics. We find evidence of a higher responsiveness of individual worker flows to changes in GDP after the crisis, particularly for a group of euro area countries which implemented significant reforms during the crisis. Furthermore, these results are not only driven by those hired on temporary contracts but also apply to those hired on permanent contracts. We also show that structural reforms, proxied by indicators which capture rigidities in labour and product markets (such as employment protection and product market regulation), can increase worker flows and may explain the increased responsive of worker flows to GDP growth after the crisis in the euro area.

JEL Classification: J21, J24, C25, K31.

Keywords: individual-level worker flows, linear probability model, labour market regulations, structural reforms, Great Recession.



BIOGRAPHY: Robert Anderton is Deputy Head of Supply-Side, Labour and Surveillance (SSL) Division in DG-Economics at the European Central Bank (ECB), Frankfurt, as well as Honorary Professor at the University of Nottingham, School of Economics, UK. He is a frequent ECB Representative at European Commission Economic Policy Committee and Macroeconomic Dialogue Meetings, as well as OECD WP1 Meetings. SSL Division at the ECB focusses on potential output and output gap analysis;  the labour market, productivity and structural issues in the euro area and euro area countries, as well as country surveillance and economic issues relating to EU governance and the deepening of Economic and Monetary Union. His current work primarily involves analysing the labour market, productivity, structural issues and digitalisation as well as aspects of country surveillance regarding the individual euro area countries. While at the ECB he has published on a wide range of topics, including: structural policies; euro area labour markets, including structural factors and their impacts on wages, employment and unemployment; global inflation and global trade; estimating the impact of exchange rate volatility on euro area trade flows; evaluating the impact of monetary union on intra- and extra-euro area trade volumes and trade prices; estimating the degree of exchange rate pass-through to euro area prices; modelling the behaviour and determinants of euro area FDI flows; and analysing the impact of the external dimension of the euro area.

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