Uncertainty affects employers' decisions about their workforce as well as capital. We exploit differences in how firms change the size of their workforce when uncertainty increases. Using data from the Wage Dynamic Network Survey for 25 European countries, we first construct, unlike the usual...

Uncertainty affects employers' decisions on labour workforce, as it does on capital. We exploit differences on how firms adjust their labour work-force when uncertainty increases. Using data from the Wage Dynamic Network Survey for 25 European countries, we first construct, opposite to usual...

We propose a Bayesian VAR model with stochastic volatility and time varying skewness to estimate the degree of labour at risk in the euro area and in the United States. We model the asymmetry of the shocks to changes in the unemployment rate as a function of real activity and financial risk...