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De Economist

, Volume 163, Issue 4, pp 435–459 | Cite as

Mismatch on the Dutch Labour Market in the Great Recession

  • Hugo Erken
  • Eric van Loon
  • Wouter Verbeek
Article

Abstract

We study if labour market mismatch has increased in the Netherlands during the Great Recession. First, we estimate a so-called “steady-state” Beveridge curve based on labour market flows. An outward shift of this curve implies decreasing matching efficiency. Second, we construct a mismatch index which enables us to calculate the contribution of sector mismatch to the increase in unemployment. Our analyses show little support for the hypothesis that mismatch is currently a significant problem for the Dutch labour market. At the aggregate level, the Beveridge curve has not shifted outwards. In addition, at most one-ninth of the Dutch unemployment rise can be attributed to sector mismatch, which is comparable to the contribution during the previous downturn.

Keywords

Beveridge curve Mismatch Labour market Unemployment Vacancies Great Recession 

JEL Classification

E20 E24 J63 J69 

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Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  1. 1.RabobankUtrechtThe Netherlands
  2. 2.CPB Netherlands Bureau for Economic Policy AnalysisThe HagueThe Netherlands

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