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A Comparative Study of the Portuguese and Spanish Labour Markets

Author

Listed:
  • Olympia Bover
  • Pilar García-Perea
  • Pedro Portugal

Abstract

Spain faces the highest unemployment rate among the European Union countries (22.2%), and Portugal the lowest (7.3%). However, superficially, these two countries share common labour market features: they both have the most stringent job security rules in the OECD, the architecture of their bargaining systems appears identical, and the generosity of their unemployment insurance seems, after 1989, roughly comparable. In this paper we address this puzzle by providing a systematic comparison of the Portuguese and Spanish labour markets.

Suggested Citation

  • Olympia Bover & Pilar García-Perea & Pedro Portugal, 1998. "A Comparative Study of the Portuguese and Spanish Labour Markets," Working Papers 9807, Banco de España.
    • Handle: RePEc:bde:wpaper:9807
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    References listed on IDEAS

    as
    1. Antolin, Pablo & Bover, Olympia, 1997. "Regional Migration in Spain: The Effect of Personal Characteristics and of Unemployment, Wage and House Price Differentials Using Pooled Cross-Sections," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 215-235, May.
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    Cited by:

    1. Stephen Nickell, 2003. "Labour Market Institutions and Unemployment in OECD Countries," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(2), pages 13-26, October.
    2. Olivier Blanchard & Pedro Portugal, 1998. "What Hides Behind an Umemployment Rate: Comparing Portuguese and U.S. Unemployment," NBER Working Papers 6636, National Bureau of Economic Research, Inc.
    3. John FitzGerald, 2001. "Wage Determination in Economies in Transition: Ireland Spain and Portugal," Papers WP141, Economic and Social Research Institute (ESRI).
    4. Vansteenkiste, Isabel, 2017. "Did the crisis permanently scar the Portuguese labour market? Evidence from a Markov-switching Beveridge curve analysis," Working Paper Series 2043, European Central Bank.
    5. Victor Aguirregabiria & Cesar Alonso-Borrego, 2014. "Labor Contracts And Flexibility: Evidence From A Labor Market Reform In Spain," Economic Inquiry, Western Economic Association International, vol. 52(2), pages 930-957, April.
    6. Stephen Nickell, 2003. "Labour Market Institutions and Unemployment in OECD Countries," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 1(02), pages 13-26, October.
    7. Nickell, Stephen, 2003. "A picture of European unemployment: success and failure," LSE Research Online Documents on Economics 20039, London School of Economics and Political Science, LSE Library.
    8. Ravi Balakrishnan, 2001. "The interaction of firing costs and on-the-job search: an application of a search theoretic model to the Spanish labour market," Working Papers 0102, Banco de España.
    9. Olivier Blanchard, 2006. "European unemployment: the evolution of facts and ideas [‘The macroeconomics of low inflation’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 21(45), pages 6-59.
    10. Addison, John T. & Teixeira, Paulino, 1999. "Is Portugal really so arteriosclerotic? Results from a cross-country analysis of labor adjustment," ZEW Discussion Papers 99-30, ZEW - Leibniz Centre for European Economic Research.
    11. Stephen Nickell & Luca Nunziata & Wolfgang Ochel & Glenda Quintini, 2001. "The Beveridge Curve, Unemployment and Wages in the OECD from the 1960s to the 1990s - Preliminary Version," CEP Discussion Papers dp0502, Centre for Economic Performance, LSE.
    12. Almeida, Rita, 2007. "The labor market effects of foreign owned firms," Journal of International Economics, Elsevier, vol. 72(1), pages 75-96, May.
    13. Castillo, Sonsoles & Dolado, Juan José & Jimeno, Juan F., 1998. "The fall in consumption from being unemployed in Portugal and Spain," UC3M Working papers. Economics 4156, Universidad Carlos III de Madrid. Departamento de Economía.
    14. Castillo, Sonsoles & Dolado, Juan José & Jimeno, Juan F., 1998. "A tale of two neighbour economies: labour market dynamics in Portugal and Spain," UC3M Working papers. Economics 4154, Universidad Carlos III de Madrid. Departamento de Economía.
    15. repec:ces:ifodic:v:1:y:2003:i:2:p:14567946 is not listed on IDEAS
    16. Addison John T. & Teixeira Paulino, 2001. "Employment Adjustment in a “Sclerotic” Labour Market: Comparing Portugal with Germany, Spain, and the United Kingdom / Beschäftigungsanpassung in einem „sklerotischen“ Arbeitsmarkt: Ein Vergleich von ," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 221(4), pages 353-370, August.
    17. Leonida Correia & Daniela Carvalho, 2016. "Cyclical Dynamics of Unemployment: Portugal versus the Euro Area," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 2(2), pages 149-166, April.
    18. Facundo Alvaredo, 2008. "Top incomes and earnings in Portugal 1936-2004," PSE Working Papers halshs-00586795, HAL.
    19. Maria KARAMESSINI, 2008. "Continuity and change in the southern European social model," International Labour Review, International Labour Organization, vol. 147(1), pages 43-70, March.
    20. Carrera, Leandro N. & Marina, Angelaki & Carolo, Daniel Fernando da Soledade, 2010. "Political competition and societal veto players: the politics of pension reform in Southern Europe," LSE Research Online Documents on Economics 27156, London School of Economics and Political Science, LSE Library.

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    More about this item

    Keywords

    SPAIN ; PORTUGAL ; LABOUR MARKET;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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