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Labour reallocation in recession and recovery: evidence for Europe


External Authors

Bartelsman, E

Lopez-Garcia, P

Presidente, G
Related Themes
Productivity, Trade, and Regional EconomiesJEL Code
E24, E32, J63, O4
Journal
National Institute Economic Review
Publisher
Sage Publications, London
External Resources
https://journals.sagepub.com/doi/full/10.1177/002795011924700113
Issue
247
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.
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