Business cycle fluctuations are associated with large ups and downs of the labour market (see Shimer 2005 for the US). The increased probability of losing a job and the reduced probability of finding a job in a recession may be considered as one of the major costs of an economic downturn.
The German labour market: Low worker flows and large volatilities
Hermann Gartner, Christian Merkl, Thomas Rothe, 8 August 2012
How local are labour markets? A look at the London Olympics
Alan Manning, Barbara Petrongolo, 3 August 2012
How local are labour markets? A number of important questions in labour economics hinge on the answer.
US unemployment: Neither natural nor unnatural
Guillermo Calvo, Fabrizio Coricelli, Pablo Ottonello, 24 July 2012
The Great Recession in the US has been followed by high and persistent unemployment. Although output recovered its pre-crisis level, the unemployment rate is still above its pre-crisis level, a situation that is popularly called ‘jobless recovery’ (see Figure 1).
Figure 1. US jobless recovery
Going separate ways? Differences in school-to-work pathways between Europe and the US
Glenda Quintini, 15 May 2012
The recent global economic crisis has brought renewed attention to the difficulties faced by youth in the labour market, including high unemployment rates, the risk of long-lasting scars from poor employment outcomes right after leaving education and the resulting risk of social and economic exclusion (Annunziata 2012).
Identity and wellbeing: How retiring makes the unemployed happier
Clemens Hetschko, Andreas Knabe, Ronnie Schöb, 4 May 2012
Most people adapt surprisingly well to changes in their lives. Even after tragic events such as the death of a family member or a chronic disease, they restore their former wellbeing, if not always completely (Clark et al 2008). There is one event, though, for which this appears not to be true – unemployment.
Fiscal consolidation in reformed vs. unreformed labour markets
Alessandro Turrini, 25 April 2012
Most EU countries have embarked on a path of fiscal austerity to ensure orderly debt developments at a juncture where unemployment is high and private-sector demand still weak.
Unhappiness and job finding
Jan van Ours, Anne Gielen, 13 February 2012
Vox readers can download CEPR Discussion Paper 8842 for free here.
The Spanish labour market: A very costly insider-outsider divide
Samuel Bentolila, Juan Dolado, Juan Francisco Jimeno , 20 January 2012
Despite having a public debt-to-GDP ratio that is lower not only than Italy’s but also than that of France, Germany, and the UK, and despite having a new government committed to fiscal consolidation, Spain is still in trouble. It faces difficulties obtaining credit in international financial markets.
The German labour-market miracle
Michael Burda, Jennifer Hunt, 2 November 2011
At a time when unemployment rates in France, Italy, the UK, and the US are stuck around 8%-9%, many are turning to the apparent miracle in the German labour market in search of lessons. In 2008–09, German GDP plummeted 6.6% from peak to trough, yet joblessness rose only 0.5 percentage points before resuming a downward trend, and employment fell only 0.5%.
Firms’ deleveraging and the persistence of unemployment
Tommaso Monacelli, Vincenzo Quadrini, Antonella Trigari, 18 October 2011
The recent financial turmoil has been associated with a depressed state of the labour market. The unemployment rate in the US has risen from 5.5% to more than 10% and continues to remain close to 9% three years after the beginning of the recession (see Figure 1).
Figure 1. Unemployment rate
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Public debt and economic growth, one more timePanizza, Presbitero
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- Rethinking macroeconomic policyBlanchard
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013