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The Global Financial Crisis and the Labour Markets in Europe: Do Labour Institutions Matter?

  • Jesús Ferreiro
  • Carmen Gómez
Chapter
Part of the International Papers in Political Economy book series (IPPE)

Abstract

The Global Financial Crisis (GFC) has had a significant impact on the European labour markets. The objective of this chapter is to analyse whether this impact significantly differs among countries and the reasons behind these differences. We analyse to what extent the differences in the impact of the GFC on the economic activity explain the variation in performances of the European labour markets. Our analysis shows that although this impact is clear, other elements explain these differences. In the second part of the chapter, we study whether the presumed rigidities in the labour markets have contributed to the evolution of the employment and unemployment rates. We conclude that more rigid labour markets have not led to larger declines in employment and increases in unemployment rates, and that more flexible labour markets have contributed to a more rapid recovery of labour markets.

Keywords

European Union Employment Unemployment Labour market rigidities Labour segmentation Economic crisis 

JEL Classification

E02 E24 J48 P52 

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Copyright information

© The Author(s) 2017

Authors and Affiliations

  • Jesús Ferreiro
    • 1
  • Carmen Gómez
    • 1
  1. 1.Department of Applied Economics V, Faculty of Economics and BusinessUniversity of the Basque Country UPV/EHUBilbaoSpain

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