## 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

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### 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*

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_Source: https://www.imf.org/en/publications/imf-staff-position-notes/issues/2016/12/31/cross-cutting-themes-in-employment-experiences-during-the-crisis-24270_