In the aftermath of the 2007 US initiated financial crisis, labour market conditions have deteriorated between mid-2008 and mid-2009 across all European countries with massive employment losses recorded in both advanced economies and emerging economies. However, policy responses to mitigate the...

This paper looks at possible transmission channels through which the 2008 crisis might affect the earnings distribution (changes in employment composition, changes in hours of work and changes in pay structure). In addition to the earnings channel, the crisis may also affect the income...