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Labour Market Dynamics in European Countries

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A special issue of Economies (ISSN 2227-7099). This special issue belongs to the section "Labour and Education".

Deadline for manuscript submissions: 30 September 2026 | Viewed by 7049

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Dr. Katalin Lipták

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Guest Editor

Department of Labour Market and Employment Policy, Faculty of Economics, University of Miskolc, 3515 Miskolc, Hungary
Interests: labour economics; regional economics; rural development

Special Issue Information

Dear Colleagues,

Due to its dynamic state, the labour market sees continual changes and does not remain in equilibrium. Moreover, there are significant regional differences within the European Union between and within member states that concern these changes. The EU strives to address and mitigate these disparities through appropriate employment policy tools and measures. Nevertheless, both labour markets with excess demand and those with excess supply complicate any measures taken and aggravate existing problems.

Labour market analysis is a research topic that continues to remain relevant. Both the global economic crisis in 2008 and the COVID-19 health pandemic resulted in recessions and transformed labour market processes in the European Union member states. In the years since then, focus has been placed on maintaining labour market stability, in addition to addressing increasing challenges, international migration, the influx of refugees, foreign guest workers, internal labour market mobility within the EU, youth unemployment, declining and aging populations, and the rise of artificial intelligence, which collectively impact labour market processes.

Given this background, we welcome studies centred on these topics. Furthermore, topics such as green jobs and job creation as concerns sustainability, as well as non-traditional (atypical) employment solutions, are also important areas of focus. Analysing regional differences in the European Union's labour market via statistical methods can also provide interesting results for policymakers in order to achieve convergence.

The aim of this Special Issue is to solicit original contributions from academics, practitioners, and other stakeholders that provide theoretical and empirical analyses, focusing on labour market processes in particular. We encourage submissions that present statistical analysis applications, case studies, and novel methodologies from parametric and non-parametric sectors related to the topic of this Special Issue. The scope of submission includes original research and review articles concerning the theme.

Dr. Katalin Lipták
Guest Editor

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Keywords

labour market processes
labour market policy
labour market interventions
labour market forecasts
youth unemployment
sectoral restructuring
atypical employment
green jobs
job creations
labour mobility
international migration
foreign guest workers
European Union

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Published Papers (6 papers)

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Research

32 pages, 1191 KB

Open AccessArticle

Corporate Concentration and Labour Conditions in Hungary’s Food Industry: Evidence on Wages, Bonuses, Working Time, and Workers’ Rights (1993–2022)

by Mahdi Imani Bashokoh, Kinfemichael Nigussie, Carol Wangari Maina and Gergely Tóth

Economies 2026, 14(5), 165; https://doi.org/10.3390/economies14050165 - 7 May 2026

Viewed by 673

Abstract

This study examines the relationship between corporate concentration and labour market conditions in Hungary’s food industry over the period 1993–2022. Using industry-level panel data for the four most highly concentrated subsectors, cereals, food processing, oils and fats, and sugar and confectionery, corporate concentration is measured using the Herfindahl–Hirschman Index (HHI), and a two-way fixed-effects panel regression model is employed to assess its association with wage structures, working-time arrangements, and employment composition. The results reveal a statistically significant negative relationship between corporate concentration and both gross monthly earnings and base hourly wages. A 1000-point increase in the HHI is associated with an approximately 10 percent decline in base wages. Higher concentration is also positively associated with greater reliance on part-time employment and increased overtime intensity, alongside a significant reduction in paid leave provision. Importantly, when variables capturing working-time arrangements and employment structure are incorporated into the earnings model, the direct effect of concentration becomes statistically insignificant. This pattern likely reflects the fact that these variables are directly embedded in the determination of gross monthly earnings, suggesting that the effect of concentration operates indirectly through adjustments in working time and employment composition rather than through a purely independent channel. This finding suggests that the impact of concentration on wages operates partly through structural adjustments in compensation systems and increased labour flexibility. Overall, the evidence indicates that corporate concentration in Hungary’s food manufacturing sector does not necessarily reduce nominal earnings but instead reshapes their composition. The role of base wages weakens, while regular bonuses emerge as the primary mechanism of income adjustment, increasing managerial discretion and income volatility. These findings contribute to the literature on labour market monopsony in transition economies and underscore the importance of integrating labour market considerations into competition policy frameworks. Full article

(This article belongs to the Special Issue Labour Market Dynamics in European Countries)

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31 pages, 1277 KB

Open AccessArticle

Minimum Wage Impacts on Employment in Greece: Estimates for the Period 2016–2024

by Athanasios Nazos, George Konteos, Grigoris Giannarakis and Yakinthi Pavlaki

Economies 2026, 14(4), 137; https://doi.org/10.3390/economies14040137 - 13 Apr 2026

Viewed by 1251

Abstract

This paper aims to provide evidence of the impact on the minimum wage to employment in Greece over the period 2016 to 2024. The main contribution of this paper is the examination of the effects of the minimum wage during a period characterized by many difficulties and research interest not only nationwide but also across regions with high heterogeneity. The case of Greece is particularly interesting to study during this period as it provides a unique context to explore the effects of minimum wage increases on employment. Greece constitutes a distinctly singular case within the European context due to the exceptional structural characteristics of its labor market. Following a protracted economic crisis, successive waves of labor market reforms, and the additional disruptions generated by the COVID-19 pandemic, Greece provides an illustrative, and in many respects unique, example of how extensive policy interventions interact with a gradually recovering economy and persistently elevated unemployment levels. Overall, the results strongly indicate that there is little to no impact of the minimum wage on employment and the findings vary considerably across the different regional contexts. Finally, the DiD methodology used supports the credibility of the findings and suggests that the lack of impact of the minimum wage is not due to model specification or timing bias. Full article

(This article belongs to the Special Issue Labour Market Dynamics in European Countries)

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13 pages, 449 KB

Open AccessArticle

Regional Labour Market Polarisation in Hungary

by Zoltán András Dániel, Dorottya Edina Kozma and Tamás Molnár

Economies 2026, 14(2), 63; https://doi.org/10.3390/economies14020063 - 17 Feb 2026

Viewed by 801

Abstract

This study investigates the spatial dimensions of labour market polarization in Hungary by examining the widening gap between developed agglomerations and lagging peripheral regions. It explores how educational inequality, technology-driven risks, and constrained mobility affect the spatial aspects of labour market polarization. It covers all 197 districts of Hungary on the LAU-1 level. Using cluster analysis and OLS regression models, we shall explore relationships between employment rates, educational attainment, automation exposure—as based on occupation-level data—and a composite mobility index. From the data, we detected distinct labour market zones, which are dynamic agglomerations, industrial transition zones, and peripheral lagging. The data confirms that the “triple trap” is clearly experienced by the peripheral regions, with lower educational attainment, high exposure to automation impacting nearly 50%, and mobility constraints keeping the workforce bound to local public works employment. These results provide evidence that labor market polarization is a self-reinforcing spatial process. It implies that successful policy interventions should be comprehensive, addressing the interrelated elements of transport infrastructure, skill development, and regional economic diversification in one stroke to break the vicious circle of immobility. Full article

(This article belongs to the Special Issue Labour Market Dynamics in European Countries)

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15 pages, 419 KB

Open AccessArticle

Determinants of Preferences for Employment Patriarchy in Turkey

by Tekin Kose and Dogan Kaan Erdinc

Economies 2026, 14(2), 51; https://doi.org/10.3390/economies14020051 - 9 Feb 2026

Viewed by 867

Abstract

Patriarchal attitudes persistently constrain women’s employment outcomes in Turkey. This study investigates individual-level determinants of preferences for employment patriarchy using the World Values Survey (WVS) Wave 7 data for the Turkish case. An ordered probit model is utilized to quantify associations of sociodemographic characteristics, religiosity, political views, and other patriarchal attitudes with preferences for employment patriarchy in Turkey. Findings reveal that higher religiosity, right-wing views, and other patriarchal attitudes (educational, managerial, and household) are positively associated with preferences for employment patriarchy in Turkey. Females are less likely to have preferences for employment patriarchy. The results imply that there are multidimensional pathways leading to preferences for employment patriarchy. Hence, policies to improve female labor market outcomes should develop multidimensional mechanisms to mitigate the impacts of religious, political and normative factors by moving beyond one-size-fits-all approaches. Full article

(This article belongs to the Special Issue Labour Market Dynamics in European Countries)

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20 pages, 1319 KB

Open AccessArticle

Comparative Analysis of Labor Markets in Bulgaria, Italy, and the UK: Wage Dynamics, Labor Costs, and Digital Development

by Dmytro Zherlitsyn and Nataliia Rekova

Economies 2026, 14(1), 13; https://doi.org/10.3390/economies14010013 - 5 Jan 2026

Viewed by 1655

Abstract

This article examines labor market dynamics in Bulgaria, Italy, and the United Kingdom by integrating demographic pressures, wage and labor cost adjustment, redistribution mechanisms, inequality outcomes, and digital readiness into a single comparative framework. This study first applies hierarchical clustering to a harmonized EU country panel for 2017–2024, using GDP per capita in PPS, average annual wage, and unemployment rate to position the three countries within the European convergence space and income–labor cost groupings. The results show that Bulgaria belongs to a low-income, fast-converging group, with nominal wages and hourly labor costs more than doubling, strong real-wage growth from a low base, and an improving price level index. At the same time, unemployment fell to below the EU average, yet income inequality remains persistently high. Italy represents a high-income but slow-growing labor market, in which real wages have declined, and labor costs per hour remain above the EU mean with a significant non-wage component. Unemployment remains relatively elevated, indicating divergence in workers’ purchasing power despite high income levels. The UK has labor costs in the mature high-income range, low unemployment, and the lowest tax wedge for low-wage workers, but with relatively high and volatile inequality. This study shows that wage dynamics, labor cost composition, and tax–benefit structures jointly mediate the translation of macroeconomic performance into household outcomes, generating distinct policy trade-offs across the three labor market configurations. Digital indicators further suggest that income level is not a sufficient predictor of digital engagement and that the observed aggregate labor market trends do not indicate a sharp employment contraction contemporaneous with the diffusion of technical innovations, such as generative AI. Full article

(This article belongs to the Special Issue Labour Market Dynamics in European Countries)

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23 pages, 929 KB

Open AccessArticle

Mapping Regional Employment Divergences in North–South Europe Through Spatial Models

by Maria Berta Belu, Smaranda Cimpoeru, Madalina Ecaterina Popescu and Amalia Cristescu

Economies 2025, 13(12), 345; https://doi.org/10.3390/economies13120345 - 27 Nov 2025

Viewed by 933

Abstract

Being a crucial barometer of labour market stability, employment successfully predicts changes in business cycles, becoming a relevant indicator to policymakers and economists worldwide. The scope of this paper is to investigate the impact of socioeconomic and demographic factors on the employment rate in the European Union through a spatial approach, as well as to compare pre- and post-pandemic characteristics of European labour markets. A persistent North–South divide in employment was observed among the main findings, with Southern regions having lower employment rates and being more vulnerable to the pandemic shocks than Northern regions. Furthermore, the comparison between the spatial econometric models estimated for 2019 and 2022 showed a significant change in the influences of regional employment performance. These discoveries could be of interest to both governments and corporate decision-makers in order to elaborate knowledgeable policies and strategies regarding the labour force. Full article

(This article belongs to the Special Issue Labour Market Dynamics in European Countries)

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