Labour market and uncertaintyBoršič, Darja (Avtor) Rihtarič, Gregor (Avtor) Fir, Nejc (Avtor) This chapter empirically tests the effects of uncertainty, measured by the World Uncertainty Index, on employment, controlling for demographic and economic determinants. Panel data empirical approach consists of fixed and random effects models as well as of Arellano-Bond and Blundell-Bond estimates of dynamic panel models based on 26 European countries in the period from 2000 to 2021. The empirical investigation is divided into three parts. First, only the effects of uncertainty are estimated, resulting in statistically significant estimated coefficient, but explaining a minor part of variability of employment. Second, demographic indicators are added as explanatory variables. In this case, a much larger share of employment variability is explained by the model, but the uncertainty becomes statistically insignificant. Third, when all four models are estimated by uncertainty and economic variables, the uncertainty statistically significantly affects the employment. Thus, the conducted empirical analysis indicates that the negative impact of uncertainty on employment exists, but is specifically important in the relation with economic indicators, while it is statistically insignificant when the demographic effects are taken into account.20252025-12-03 10:25:15Znanstveno delo96124sl