How did Brexit impact labour market efficiency in the UK?

Abstract

We investigate how Brexit impacted labour market efficiency in the UK as captured by shifts in the Beveridge Curve (BC). Using a difference-in-differences approach and event-studies, we compare changes in job vacancy rates in the UK, relative to other European Union countries, from before to after Brexit for a given unemployment rate. Our results are suggestive of an inward shift of the BC and increased labour market efficiency after the referendum.