New research analyses relationship between unemployment and workers’ earnings

The Central Bank has published a new Research Technical Paper by Reamonn Lydon and Matija Lozej on ‘Flexibility of new hires’ earnings in Ireland’.

• Earnings of new hires are substantially more flexible than those of existing workers
• Earnings of new hires from unemployment are more procyclical than workers with less valuable outside options
• Workers with better education show less sensitivity of earnings of new hires from unemployment than other groups 

Notes:

Research Technical Papers are published on the Central Bank’s website here.

The views presented in Research Technical Papers are those of the authors alone and do not necessarily represent the official views of the Central Bank of Ireland.