Shifts in euro area Beveridge curves and their determinants

This paper analyses euro area Beveridge curves at the euro area aggregate and country level over the past 25 years. Using an autoregressive distributed lag model, we find a significant outward shift and flattening of the euro area Beveridge curve since the onset of the crisis, but considerable heterogeneity at country level. We test for factors underlying these developments using the local projection method of Jordà (Am Econ Rev 95(1):161–182, 2005). Skill mismatch and high shares of construction workers, as well as high home ownership rates appear strong determinants of the outward shifts in Beveridge curves. Higher female participation rates mitigate these effects.