As the fourth out of 15 projects, the project “Globalisation, Labour Markets, and the Welfare State” (GlobLabWS) has now published its first WSF Working Paper on “Firm Size Distribution and Employment Fluctuations: Theory and Evidence“.
The project focuses on the interaction between the welfare state, globalisation and labour market institutions. It aims to overcome the conventional categories of the micro- and macroeconomic level in order to achieve a better understanding of the interactions between adjustments on both levels. It focusses on the the role of the welfare state in countering the labour market and income inequality effects of globalisation.
The team around Project Leader Catia Montagna use the examples of Germany, Sweden and the UK to show that the size distribution of firms is an important determinant of the relationship between changes in output and employment. This finding complements the existing research on employment volatility, which has focussed above all on differences in labour market institutions as the explaining factor. However, both industry and country specific factors such as labour market and industrial policies need to be taken into account in order to fully comprehend employment volatility.
To access the entire WSF Working Paper Series, go to welfarestatefutures.org/working-papers/