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Table 3 Successful and unsuccessful labour market outcomes

From: Transitions in labour market status in EU labour markets

  Central Eastern Nordics Continental Mediterranean
  Successful labour market outcome
1998-2003 59.489 66.142 66.291 59.439
2004-08 59.997 71.673 61.696 48.285
  Unsuccessful labour market outcome
1998-2003 33.255 19.710 16.627 12.334
2004-08 31.003 15.878 35.231 12.121
  1. Note: Results are based on a 5-dimensional transition probability matrix where statuses are defined as E = employed; U = unemployed; NAN = inactive (excluding education and retirement); RE = in retirement; IE = in education. Compared to the results where a 3-dimensional transition matrix is used (with E = employed; U = unemployed; NA = inactive), the results here holds in the light of NA = NAN + IE + RE. In other words, in computing successful and unsuccessful labour market outcomes we control for education and retirement flows when defining the status of inactivity. Following Theeuwes et al. (1990) a successful labour market entry is computed as the percentage of people successfully entering the labour market (p nan,e ) as a percentage of the total number of people entering the labour market, i.e. SLjt= p nan,e jt/( p nan,e jt+ p nan,u jt).
  2. Analogously, an unsuccessful labour market outcome is the percentage of people withdrawing from the labour market (but not moving to either retirement or education), as a percentage of people leaving unemployment, i.e. FLjt= p u,nan jt/( p u,nan jt+ p u,e jt).
  3. Sources: LFS microdata, authors’ computations.
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