The polarization impact of the crisis on the Eurozone labour markets: a hierarchical cluster analysis

ABSTRACT

This study assesses the impact of the Great Recession (2008–2014) on the process of integration of the Eurozone labour markets. Through an agglomerative hierarchical cluster analysis using several European labour market harmonized indicators, we find that the crisis led to a greater integration, and to a polarization within the area. In the aftermath of crisis, two groups of countries clearly emerged, consisting Austria, Belgium, Finland, France, Germany, Italy, Luxembourg and Netherlands in the core while Greece, Ireland, Portugal and Spain in the periphery.

KEYWORDS:

• Cluster analysis
• Eurozone
• labour markets
• great recession

JEL CLASSIFICATION:

• C49
• E24
• O52

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

¹ Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain.