This paper estimates the impact of fiscal consolidation on unemployment and job market flows across EU countries using a recent database of consolidation episodes built on the basis of a “narrative” approach (Devries et al., 2011). Results show that the impact of fiscal consolidation on...

The fight against unemployment has become one of the most important challenges that advanced European countries have faced in the last forty years. Economic literature suggests that the changes in labour market institutions - through the implementation of a set of flexibility measures -...