Cross-Cutting Themes in Employment Experiences during the Crisis
IMF Staff Position Notes, November 11, 2010
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Bibliographic details
- Authors: Athanasios Vamvakidis, Francis Vitek, Mwanza Nkusu, Reginald Darius, Alun H. Thomas, Edouard Vidon
- Published: November 11, 2010
- Series: IMF Staff Position Notes
- DOI: https://doi.org/10.5089/9781462357604.004
Summary
- Title: Cross-Cutting Themes in Employment Experiences during the Crisis
- Authors: Athanasios Vamvakidis, Francis Vitek, Mwanza Nkusu, Reginald Darius, Alun H. Thomas, Edouard Vidon
- Publication date: November 11, 2010
- Core focus: Analysis of employment experiences during the recent global crisis across six economies—Germany, Korea, Mexico, New Zealand, Spain, and Sweden—to explain divergent labor market outcomes and the effectiveness of policy responses.
Key findings
- The divergence of labor market outcomes and the effectiveness of policies during the crisis can be explained by the interaction between:
- the nature of the shocks (temporary versus permanent), and
- differences in the structure and institutions of each country’s economy.
- The worst job losses, relative to the drop in output, followed permanent shocks.
- Permanent shocks generated especially severe employment effects in:
- dual labor markets, and
- settings with wage rigidities.
- Policies to avoid job cuts were much more effective when:
- they were well-targeted, and
- they responded to temporary shocks.
- In contrast, policies to facilitate labor movements were more appropriate following permanent shocks.
Policy recommendations and implications
- For temporary shocks:
- Implement well-targeted policies aimed at avoiding job cuts.
- For permanent shocks:
- Focus on policies that facilitate labor movements (reallocation of workers across sectors/locations).
- Consider the interaction of shock type and country-specific labor market institutions (e.g., presence of dual labor markets, wage rigidity) when designing policy responses.
Publication metadata
- Series: Staff Position Note No. 2010/018
- Issue: 018
- Volume: 2010
- Pages: 21
- DOI: https://doi.org/10.5089/9781462357604.004
- Stock No: SPNEA2010018
- ISBN: 9781462357604
- ISSN: 2617-6742
- Citation preview (Chicago): Athanasios Vamvakidis, Francis Vitek, Mwanza Nkusu, Reginald Darius, Alun H. Thomas, and Edouard Vidon. "Cross-Cutting Themes in Employment Experiences during the Crisis", IMF Staff Position Notes 2010, 018 (2010), accessed 9/19/2026, https://doi.org/10.5089/9781462357604.004
IMF Staff Position Note No. 2010/018
Content in this bundle
- _spn1018 - Executive Summary