This article investigates the evolution of job tenure for the time period 2002–2012 using microdata from the European Union Labour Force Survey (EU‐LFS). Overall, the data show a slight increase in average job tenure at the EU level, which can be explained by disproportional lay‐offs of short‐tenured workers during the crisis. When controlling for changes in the demographic composition of the workforce, an underlying negative trend in mean tenure becomes visible. Job tenure evolved very differently across the EU before and during the crisis, highlighting the importance of institutional frameworks, especially employment protection legislation (EPL).

This paper analyses the impact of the business cycle on labour market dynamics in EU member states and the US during the first decade of the 21st century. Using unique measures of labour market flows constructed from worker-level micro data, we examine to what extent macro shocks were transmitted to national labour markets. We apply the approach by Blanchard and Wolfers (2000) to analyse the role of the interaction of macroeconomic shocks and labour market institutions for worker transitions in order to explain crosscountry differences in labour market reactions in a period including the Great Recession. Our results suggest a significant influence of trade unions in channelling macroeconomic shocks. Specifically, union density moderates these impacts over the business cycle, i.e. countries with stronger trade unions experience weaker reactions of the unemployment rate and of worker transitions.

No abstract