Explaining the Evolution of Job Tenure in Europe, 1995–2020

During the last quarter century, job tenure in Europe has shortened. Using data from EurostatLabor Force Surveys of 29 countries from 1995 to 2020 and applying an age-period-cohort decomposition to analyzechanges in tenure for specific birth cohorts, this paper shows that tenure has shrunk for cohor...

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Bibliographic Details
Published inIDEAS Working Paper Series from RePEc
Main Authors Bussolo, Maurizio, Capelle, Damien Fierre Jean, Lokshin, Michael M, Torre, Ivan, Winkler, Hernan
Format Paper
LanguageEnglish
Published St. Louis Federal Reserve Bank of St. Louis 01.01.2022
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Summary:During the last quarter century, job tenure in Europe has shortened. Using data from EurostatLabor Force Surveys of 29 countries from 1995 to 2020 and applying an age-period-cohort decomposition to analyzechanges in tenure for specific birth cohorts, this paper shows that tenure has shrunk for cohorts born in more recentyears. To account for compositional changes within cohorts, the analysis estimates the probability of holding jobs ofdifferent durations, conditional on individual and employment-related characteristics. The estimationsdemonstrate that, over time, the likelihood of having a medium- or long-term job decreased and holding a short-termjob increased. The paper also finds that stricter job protection legislation appears to decrease the probabilityof holding a short-term job, and higher trade openness and ICT-related technological change are correlated with anincrease of that probability.