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The purpose of this paper is to analyze the co-movements between the Portuguese, Greek, Irish and German government bond markets after the subprime crisis (2007 to 2013), with a special focus on the European sovereign debt crisis. It aims to assess the existence of contagion between the Portuguese, Greece and Irish bond markets and to explore the phenomenon of flight-to-quality from the Portuguese and Greek bond markets to the German market.

The analysis is undertaken using a DCC-GARCH model with daily data for 10-year yield government bonds. The change in correlation from the stable periods to the crisis periods is used to identify contagion or flight-to-quality.

Results suggest that there was contagion between the Greek and Portuguese markets, and to a lesser extent between the Irish and Portuguese markets. During most of the identified crisis periods, there are evident flight-to-quality flows from the Portuguese and Greek bond markets to the German market.

This paper contributes to the literature by applying the methodology DCC-GARCH to several crisis episodes for the analysis of contagion and flight-to-quality during the European sovereign debt crisis.

The purpose of this paper is to estimate the impact of industry and occupation skills on the wages of displaced workers due to firm closure.

Using linked employer-employee data on displaced workers, this paper estimates the impact of industry and occupation tenure on post-displacement wage changes correcting for endogeneity with a multinomial logit model.

The evidence suggests that occupation has more specific skill requirements than industry. Displaced workers moving both industry and occupation suffer a higher wage decline than those changing only industry or occupation. Furthermore, the transferability of skills varies across occupations and industries; more specifically, intermediate-level occupations are more demanding in specific skills and impose higher wages losses for displaced workers. Finally, the economic crisis reduced the return on firm-specific skills only in some cases.

The examination of skill specificity/transferability helps firms, workers and policy makers to draw strategies and policies to improve their individual situation and social welfare. The analysis suggest that when experienced workers are displaced and forced to find a job in a different industry, they suffer considerable wage cuts. While displacement imposes costs to workers and society, different choices impact wages differently.

To the authors’ best knowledge, this is the first paper studying the simultaneous impact of industry and occupation tenure on wages using displaced workers due to firm closing. The paper also corrects for the selection of different alternatives after the displacement and uses data from a country characterised by low-job flows and low-worker flows. Finally, the impact of economic crises on return to skills is assessed.

The purpose of this paper is to understand further the role played by work-based cognitive skills in the growth dynamics in Europe.

Work-based cognitive skills are studied using a factor analysis on data from the European Work Conditions Survey (Eurofound) referring to work cognitive requirements. This and other measures of education quality and quantity indicators are used to estimate growth regression models for 28 European countries, in order to test for the significance of work-based skills.

The results corroborate the hypothesis that work-based cognitive skills have been a powerful predictor of economic growth over the last decades. Countries where workplaces require and foster advanced cognitive skills tend to exhibit higher economic growth.

The Eurofound Survey on work-based skills, a major source of this study, only began in 1990 so is quite recent and covers few countries.

The results indicate that the mobilisation of the full intellectual potential of workers in their work context is essential to achieve high-economic performances. Boosting workers interactive learning and autonomy should become a key policy and organisational aim.

The authors bring a deeper approach to the way human capital is addressed by testing the relevance of work-based cognitive skills on economic performance. Hence the authors build a bridge between economic growth literature, which focuses largely on the role of formal education, and innovation studies where the emphasis is placed on the relevance of learning processes.