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The purpose of this paper is to explore the matching process before and after the Great Recession in the Netherlands. The Dutch case is interesting because it is characterised by increasing matching efficiency.

This paper uses data from 2001 to 2014 to study the Dutch labour market matching process accounting for the three labour market states and their heterogeneities.

The elasticity of hires with respect to the short-term employed was significant, positive and countercyclical, while elasticities relating to new entrants were procyclical. The matching function (MF) displays constant returns to scale (CRTS) when using an alternative labour supply (LS) measure that includes the short-term employed as jobseekers. The findings are at odds with the idea of mismatch and a shortage of skills. Search frictions for employers were lower and vacancies were filled faster. This can be related to the fact that in a loose labour market context with increasing short-term employment, employers increase their hiring of employed workers which generates negative externalities on unemployed.

The implications concern the specification of the MF and the CRTS assumption when using unemployment as a LS measure.

The authors provide a comprehensive review of existing turnover studies in Spain. The literature review reveals that research on voluntary turnover is scarce, while other types of mobility, such as involuntary separations, downsizing, and planned turnover through contract date expiration, have received substantial attention. The authors identify the main institutional characteristics of Spain and explain why these may contribute to the low incidence of voluntary turnover. Specifically, the authors note that employment protection legislation, high unemployment, high unemployment insurance, centralized collective bargaining, the composition of the sector, high power distance, and in-group collectivism are important drivers of the patterns observed in existing turnover studies. The authors also explore how some of the mechanisms and processes exposed by key turnover theories may be applicable to the Spanish context. This chapter highlights the importance of paying attention to the role of the institutional and cultural context to understand different mobility patterns in the labor market. The authors also suggest several avenues for future research including the study of different turnover types, employer and employee outcomes, cultural variations, and employment practices.