Internal labour market mobility in 2005-2014 in Latvia: the micro data approach

Based on labour force survey micro data for 2005–2014 this research evaluates labour market internal mobility in Latvia comparing periods before, during and after the crisis. We also provide the comparison of Latvia's situation with other euro area countries, which is of particular interest since labour flow statistics for Latvia are not present in major reports on the European labour market. Labour flow estimates and the survival analysis indicate that labour market in Latvia is internally mobile; it accelerated economic recovery after the crisis and is enhancing Latvia's ability to adjust quickly to internal and external shocks. The flexibility of contract options and working hours, serve as a labour market mobility boosting mechanism. The survival analysis indicates that the flows from/to employment to/from unemployment in Latvia are determined by the characteristics of particular worker groups and the performance of particular sectors of the economy.