Labour market flexibility and spatial mobility

Abstract

Purpose – Recent economic recession has highlighted the role of labour market flexibility as a key factor of competitiveness of a country. Despite the fact that labour mobility can essentially be seen as part of labour market flexibility, there is notable research gap concerning spatial mobility and other facets of labour market flexibility. The purpose of this special issue is to fill these gaps. Design/methodology/approach – The papers in the special issue represent various quantitative methods and databases, whereas mainly micro data (workplace, labour force or immigrant surveys, job search portal, etc.) is used. However, the type of labour market flexibility addressed is both micro- and macro-level. Findings – It is demonstrated that labour occupational mobility is determined by the business cycle, numerical flexibility, occupational categories, and sector. Spatial mobility may have counterintuitive effects on individual occupational mobility depending on gender and it is related to various flexibilities in the workplace. It is also suggested that different types of flexibilities on a firm level are interdependent of each other. Originality/value – The special issue adds to the labour market related knowledge by integrating labour market flexibility and mobility. Individually, both phenomena have been studied before, but not much research is devoted to their inter-linkages. The special issue also contributes by examining labour market flexibility and spatial mobility in the context of different countries, economic cycles, and institutional settings.

Labour market and labour market policies during great recession: the case of Estonia

“…Baltic labour markets are flexible and this has already been reported in the late 1990s (Berengaut, J. et al 1998, for late period see Eamets, Paas, 2007) Just to illustrate the magnitude of labour market changes: as result of the economic boom between 2004 and 2007, employment reached 70% and unemployment was 4%. ; during recession unemployment grew over a period of one and a half year up to almost 20% and employment dropped to 53%.…”

“…In our interpretation labour market flexibility can be assessed at micro and macro levels (Eamets and Paas, 2007). At the macro level, the flexibility of the labour market is measured by legislation and regulations and the flexibility of wages; the latter also reflects the influence of trade unions.…”

Changes in the Labour Market in the Regions of Slovakia

“…Labour market flexibility is considered a key factor not only in a country's competitiveness but also within its regions. One of the basic components of labour market flexibility is labour mobility (Eamets and Jaakson, 2014). In general, we distinguish between spatial and job mobility.…”

Internal labour market mobility in 2005–2014 in Latvia: the micro data approach

“…By keeping the exchange rate peg, Latvia restored competitiveness through internal adjustments, that is, wage cuts and labour force restructuring. Restored competitiveness together with improved internal demand led to the recovery of economic growth within 4-5% per year in 2011-2013. When evaluating labour market flexibility one should take into account both micro and macro level (Eamets, 2013;Eamets & Paas, 2007). At the macro level, flexibility is determined by institutional characteristics and the flexibility of wages; at the micro level, flexibility is indicated by mobility of labour across different labour market states, regions and professional statuses.…”