Labour reallocation in recession and recovery: evidence for Europe

Publication date: 6 Feb 2019 | Publication type: National Institute Economic Review | Theme: Trade, Investment & Productivity | External Author(s): Bartelsman, E; Lopez-Garcia, P; Presidente, G | JEL Classification: E24, E32, J63, O4 | Journal: National Institute Economic Review Issue 247 | Publisher: Sage Publications, London

This paper builds upon Bartelsman, Lopez-Garcia, and Presidente (2018) and provides empirical evidence on the cyclical features of labour reallocation in a sample of European Union (EU) countries over the Great Recession and the slow recovery. The analysis makes use of cross-country micro-aggregated data on firm dynamics and productivity from release 6 of the ECB CompNet database. While productivity-enhancing reallocation generally is counter-cyclical, with a stronger effect providing a silver lining in downturns, it was weaker during the Great Recession in the EU, but reverted back to more normal patters in the most recent years.

Keyword tags: 
Great Recession