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Abstract
We use survey micro-data for 31 European countries, and estimate the life-cycle profiles of worker transition probabilities across employment, unemployment and nonparticipation. The estimated transition probabilities are then used to explain aggregate difference in employment rates between Lithuania and Europe. We show that the separations from employment is a key in understanding differences in labor market outcomes of both genders, and that demographics play a large negative role for Lithuanian employment rates. The results have important implications for economic policies that are discussed at the end of the analysis.
The views expressed are those of the author(s) and do not necessarily represent those of the Bank of Lithuania.
All results 3
No 32
2020-02-07
The life-cycle profile of worker flows in Lithuania
No 31
2020-01-21
The Challenges of Lithuania’s Economic Convergence and Labour Market
Eglė Aleknevičiūtė, Mariarosaria Comunale, Laura Galdikienė, Darius Imbrasas, Etienne Lalé, Laura Mociūnaitė, Paulius Morkūnas, Anh D. M. Nguyen, Soroosh Soofi-Siavash, Tomas Šiaudvytis, Linas Tarasonis, Vaidotas Tuzikas, Mantas Vilniškis, Gintarė Zelionkaitė
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Abstract
The views expressed are those of the author(s) and do not necessarily represent those of the Bank of Lithuania.
Available only in Lithuanian
No 16
2019-12-04
The Life-cycle Profile of Worker Flows in Europe: an Empirical Investigation
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Abstract
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.