Why Labour Market Performance Differed Across Countries. The Impact Of Institutions And Labour Market Policy
This paper investigates the performance of labour markets during the recent crisis. While the crisis had started rather simultaneously across regions and countries, the length and deepness finally proved very heterogeneous. Some countries still have not rebounded, in others inflationary pressure has become a severe problem after output had surpassed pre-crisis level by far. The same holds for labour markets. In some countries employment is now above its pre-crisis peak and unemployment stable or falling, in others unemployment is persistently near or above 10%. This paper investigates to which extent labour market performance during the crisis depended on macroeconomic conditions prevailing at the start of the crisis, structural characteristics of the economies, and labour market institutions and policy.