The Labor Market Effects of Financial Crises : The Role of Temporary Contracts in Central and Western Europe

This paper examines how the 2008-09 financial crisis affected labor markets in Central and Western Europe, and how this impact depended on employment protections laws. Using a differences-in-differences approach that compares industries with varyin...

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Main Authors:	Sharma, Siddharth, Winkler, Hernan
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	FINANCIAL CRISES LABOR MARKETS EMPLOYMENT PROTECTION LABOR CONTRACTS
Online Access:	http://documents.worldbank.org/curated/en/213351496673003121/The-labor-market-effects-of-financial-crises-the-role-of-temporary-contracts-in-central-and-western-Europe http://hdl.handle.net/10986/27284

id	okr-10986-27284
recordtype	oai_dc
spelling	okr-10986-272842021-06-08T14:42:47Z The Labor Market Effects of Financial Crises : The Role of Temporary Contracts in Central and Western Europe Sharma, Siddharth Winkler, Hernan FINANCIAL CRISES LABOR MARKETS EMPLOYMENT PROTECTION LABOR CONTRACTS This paper examines how the 2008-09 financial crisis affected labor markets in Central and Western Europe, and how this impact depended on employment protections laws. Using a differences-in-differences approach that compares industries with varying degrees of inherent dependence on external financing, the analysis finds that the crisis had significant negative impacts on employment, particularly on temporary, less skilled, and younger workers. These impacts on the level and composition of employment were significantly stronger in countries with stronger legal protection of permanent workers from dismissal. This finding suggests that, given regulatory inflexibility in adjusting the permanent workforce, firms responded to tightening financial constraints by disproportionately laying off temporary workers (who tend to be younger and less skilled than permanent workers). 2017-06-21T15:45:30Z 2017-06-21T15:45:30Z 2017-06 Working Paper http://documents.worldbank.org/curated/en/213351496673003121/The-labor-market-effects-of-financial-crises-the-role-of-temporary-contracts-in-central-and-western-Europe http://hdl.handle.net/10986/27284 English en_US Policy Research Working Paper;No. 8085 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia Eastern Europe Europe European Union
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	FINANCIAL CRISES LABOR MARKETS EMPLOYMENT PROTECTION LABOR CONTRACTS
spellingShingle	FINANCIAL CRISES LABOR MARKETS EMPLOYMENT PROTECTION LABOR CONTRACTS Sharma, Siddharth Winkler, Hernan The Labor Market Effects of Financial Crises : The Role of Temporary Contracts in Central and Western Europe
geographic_facet	Europe and Central Asia Eastern Europe Europe European Union
relation	Policy Research Working Paper;No. 8085
description	This paper examines how the 2008-09 financial crisis affected labor markets in Central and Western Europe, and how this impact depended on employment protections laws. Using a differences-in-differences approach that compares industries with varying degrees of inherent dependence on external financing, the analysis finds that the crisis had significant negative impacts on employment, particularly on temporary, less skilled, and younger workers. These impacts on the level and composition of employment were significantly stronger in countries with stronger legal protection of permanent workers from dismissal. This finding suggests that, given regulatory inflexibility in adjusting the permanent workforce, firms responded to tightening financial constraints by disproportionately laying off temporary workers (who tend to be younger and less skilled than permanent workers).
format	Working Paper
author	Sharma, Siddharth Winkler, Hernan
author_facet	Sharma, Siddharth Winkler, Hernan
author_sort	Sharma, Siddharth
title	The Labor Market Effects of Financial Crises : The Role of Temporary Contracts in Central and Western Europe
title_short	The Labor Market Effects of Financial Crises : The Role of Temporary Contracts in Central and Western Europe
title_full	The Labor Market Effects of Financial Crises : The Role of Temporary Contracts in Central and Western Europe
title_fullStr	The Labor Market Effects of Financial Crises : The Role of Temporary Contracts in Central and Western Europe
title_full_unstemmed	The Labor Market Effects of Financial Crises : The Role of Temporary Contracts in Central and Western Europe
title_sort	labor market effects of financial crises : the role of temporary contracts in central and western europe
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/213351496673003121/The-labor-market-effects-of-financial-crises-the-role-of-temporary-contracts-in-central-and-western-Europe http://hdl.handle.net/10986/27284
_version_	1764464103837925376

The Labor Market Effects of Financial Crises : The Role of Temporary Contracts in Central and Western Europe

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