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Dual labor markets in Spain: a firm-side perspective

Author

Listed:
  • Iván Auciello-Estévez

    (Banco de España)

  • Josep Pijoan-Mas

    (CEMFI AND CEPR)

  • Pau Roldan-Blanco

    (Banco de España)

  • Federico Tagliati

    (Banco de España)

Abstract

Using comprehensive balance-sheet data for Spain, we document the use of fixed-term and open-ended contracts by firms over the period 2004-2019. We show that the use of temporary contracts is very heterogeneous across firms, with the distribution of the temporary share being severely right-skewed: the median share of temporary employment is only 3%, while the average is 18%. Part of this variation is related to the sector and region where firms operate as well as to the macroeconomic cycle. However, around 80% of the variation reflects differences across firms operating in the same industry, in the same location and at the same point of the business cycle. At the individual level, even after controlling for sector and region, we observe that larger and younger firms make more extensive use of temporary contracts.

Suggested Citation

  • Iván Auciello-Estévez & Josep Pijoan-Mas & Pau Roldan-Blanco & Federico Tagliati, 2023. "Dual labor markets in Spain: a firm-side perspective," Occasional Papers 2310, Banco de España.
    • Handle: RePEc:bde:opaper:2310
    DOI: https://doi.org/10.53479/29869
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    More about this item

    Keywords

    dual labor markets; temporary contracts; unemployment;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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