This paper considers labour supply and demand shocks in a simple flow model of the labour market. We explicitly model the propagation of shocks and the adjustment mechanisms. By way of simulations we explore the extent of labour market hysteresis arising from negative duration dependence and the...

This paper studies worker displacement in the Netherlands. We discuss the relevant institutions, and we analyze the incidence and consequences of displacement. In the next stage of the project this paper will be merged with the corresponding paper on the US.

This study presents an explorative econometric analysis of the influence of labour market flows on wage formation. It applies the vector cointegration and common trends methodology of Johansen (1995). According to this approach, a combination of the flow of layoffs (flow from employment to...

This study presents an empirical analysis of the influence of labour market flows on wage and price formation. A system of wage, price and employment equations in the vein of Nickell (1987) is estimated including labour flows as explanatory variables. A combination of the flow of layoffs (flow...

If a firm wants to reduce its workforce, it may dismiss some of its workers. Altematively, it may make workers eligible for disability benefits. Upon examination these workers formally satisfy the conditions for disability enrolment. Because these conditions allow for a rather liberal...

This paper models the propagation at the macro level of four types of shocks using the SVAR approach. Time series data for the Netherlands on job creation, job destruction, the number of vacancies and labour supply are used to identify aggregate demand and supply shocks, and reallocation demand...

Unemployment rates appear to vary widely at the subregional (e.g. local or provincial) level. Using spatial econometric models for spatial autocorrelation, this paper focuses attention on the spatial structure of regional unemployment disparities of Italian provinces. On the basis of findings...

This paper presents a model in which not only employed job search is endogenized, but also the phenomenon that long-term unemployed may become discouraged and stop searching for a job. When this model is applied to Dutch flow data, we find that this discouragement particularly took place in the...

This paper investigates the degree in which the individual exit rate out of unemployment for young job seekers changes as a function of the elapsed unemployment duration. We use a nonparametric estimation method that is designed to be applicable to population data on outflows from different...

In this paper a statistical model combining duration of search for an ap­prentice vacancy and choice of entering a training programme aiming at help­ing students finding an vacancy is presented. Using conventional duration models yields a negative effect on durations of search from the...