Bank of Lithuania
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2019-12-04

The Life-cycle Profile of Worker Flows in Europe: an Empirical Investigation

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In this paper, we first provide a comprehensive account of the relationship between cross-country differences in aggregate employment and disaggregated differences in worker flows along the life cycle. To this end, we use survey micro-data for 31 European countries, and estimate the life-cycle profiles of transition probabilities across employment, unemployment and non-participation for each country. We develop a decomposition measuring the contribution of these transition probabilities to aggregate employment differences. We find substantial cross-country and cross-gender heterogeneity with respect to the role of worker flows between each labor market state.

JEL Codes: E02, E24, J21, J64, J82.

The views expressed are those of the author(s) and do not necessarily represent those of the Bank of Lithuania.

unemployment, Employment, Labor Force Participation, Life cycle, Worker Flows, Labor Market Institutions