Who Bears the Brunt? The Impact of Banking Crises on Younger and Older Workers

Mathijs van Dijk, Harry van Dalen, Martin Hyde

Research output: Working paperDiscussion paperOther research output

30 Downloads (Pure)

Abstract

How do young and old workers fare on the labor market when a banking crisis occurs? Using data on 41 banking crises in 38 developed countries over 1990-2014, we examine how banking crises affect the labor market position of workers from five different age groups (including 65 years and older) and whether employment protection legislation shields workers from unemployment. Results show that unemployment increases across the board in the aftermath of banking crises, but much more so for younger workers. The labor force participation of older women increases significantly in the medium run, whereas older men withdraw from the labor market. Countries with strong employment protection legislation shield workers from the impact of banking crises in the short run, but show signs of increases in unemployment rates for young and middle-aged workers in the medium run.
Original languageEnglish
Place of PublicationTilburg
PublisherCentER, Center for Economic Research
Number of pages33
Volume2019-025
Publication statusPublished - 17 Jul 2019

Publication series

NameCentER Discussion Paper
Volume2019-025

Fingerprint

Banking crisis
Young workers
Older workers
Workers
Labour market
Unemployment
Employment protection legislation
Age groups
Unemployment rate
Labor force participation
Older women
Market position
Short-run
Developed countries

Keywords

  • banking crisis
  • unemployment
  • employment protection
  • age
  • older workers
  • labor force

Cite this

van Dijk, M., van Dalen, H., & Hyde, M. (2019). Who Bears the Brunt? The Impact of Banking Crises on Younger and Older Workers. (CentER Discussion Paper; Vol. 2019-025). Tilburg: CentER, Center for Economic Research.
van Dijk, Mathijs ; van Dalen, Harry ; Hyde, Martin. / Who Bears the Brunt? The Impact of Banking Crises on Younger and Older Workers. Tilburg : CentER, Center for Economic Research, 2019. (CentER Discussion Paper).
@techreport{3874c7cc7e0c4471b73c28fe5111abb9,
title = "Who Bears the Brunt? The Impact of Banking Crises on Younger and Older Workers",
abstract = "How do young and old workers fare on the labor market when a banking crisis occurs? Using data on 41 banking crises in 38 developed countries over 1990-2014, we examine how banking crises affect the labor market position of workers from five different age groups (including 65 years and older) and whether employment protection legislation shields workers from unemployment. Results show that unemployment increases across the board in the aftermath of banking crises, but much more so for younger workers. The labor force participation of older women increases significantly in the medium run, whereas older men withdraw from the labor market. Countries with strong employment protection legislation shield workers from the impact of banking crises in the short run, but show signs of increases in unemployment rates for young and middle-aged workers in the medium run.",
keywords = "banking crisis, unemployment, employment protection, age, older workers, labor force",
author = "{van Dijk}, Mathijs and {van Dalen}, Harry and Martin Hyde",
note = "CentER Discussion Paper No. 2019-025",
year = "2019",
month = "7",
day = "17",
language = "English",
volume = "2019-025",
series = "CentER Discussion Paper",
publisher = "CentER, Center for Economic Research",
type = "WorkingPaper",
institution = "CentER, Center for Economic Research",

}

van Dijk, M, van Dalen, H & Hyde, M 2019 'Who Bears the Brunt? The Impact of Banking Crises on Younger and Older Workers' CentER Discussion Paper, vol. 2019-025, CentER, Center for Economic Research, Tilburg.

Who Bears the Brunt? The Impact of Banking Crises on Younger and Older Workers. / van Dijk, Mathijs ; van Dalen, Harry; Hyde, Martin.

Tilburg : CentER, Center for Economic Research, 2019. (CentER Discussion Paper; Vol. 2019-025).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Who Bears the Brunt? The Impact of Banking Crises on Younger and Older Workers

AU - van Dijk, Mathijs

AU - van Dalen, Harry

AU - Hyde, Martin

N1 - CentER Discussion Paper No. 2019-025

PY - 2019/7/17

Y1 - 2019/7/17

N2 - How do young and old workers fare on the labor market when a banking crisis occurs? Using data on 41 banking crises in 38 developed countries over 1990-2014, we examine how banking crises affect the labor market position of workers from five different age groups (including 65 years and older) and whether employment protection legislation shields workers from unemployment. Results show that unemployment increases across the board in the aftermath of banking crises, but much more so for younger workers. The labor force participation of older women increases significantly in the medium run, whereas older men withdraw from the labor market. Countries with strong employment protection legislation shield workers from the impact of banking crises in the short run, but show signs of increases in unemployment rates for young and middle-aged workers in the medium run.

AB - How do young and old workers fare on the labor market when a banking crisis occurs? Using data on 41 banking crises in 38 developed countries over 1990-2014, we examine how banking crises affect the labor market position of workers from five different age groups (including 65 years and older) and whether employment protection legislation shields workers from unemployment. Results show that unemployment increases across the board in the aftermath of banking crises, but much more so for younger workers. The labor force participation of older women increases significantly in the medium run, whereas older men withdraw from the labor market. Countries with strong employment protection legislation shield workers from the impact of banking crises in the short run, but show signs of increases in unemployment rates for young and middle-aged workers in the medium run.

KW - banking crisis

KW - unemployment

KW - employment protection

KW - age

KW - older workers

KW - labor force

M3 - Discussion paper

VL - 2019-025

T3 - CentER Discussion Paper

BT - Who Bears the Brunt? The Impact of Banking Crises on Younger and Older Workers

PB - CentER, Center for Economic Research

CY - Tilburg

ER -

van Dijk M, van Dalen H, Hyde M. Who Bears the Brunt? The Impact of Banking Crises on Younger and Older Workers. Tilburg: CentER, Center for Economic Research. 2019 Jul 17. (CentER Discussion Paper).