Abstract
We study if labour market mismatch has increased in the Netherlands during the Great Recession. First, we estimate a so-called “steady-state” Beveridge curve based on labour market flows. An outward shift of this curve implies decreasing matching efficiency. Second, we construct a mismatch index which enables us to calculate the contribution of sector mismatch to the increase in unemployment. Our analyses show little support for the hypothesis that mismatch is currently a significant problem for the Dutch labour market. At the aggregate level, the Beveridge curve has not shifted outwards. In addition, at most one-ninth of the Dutch unemployment rise can be attributed to sector mismatch, which is comparable to the contribution during the previous downturn.
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