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Why is Spanish Unemployment so High?

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  • Dolado, Juan J.
  • Jimeno, Juan Francisco

Abstract

In this paper we analyse the underlying causes behind Spanish unemployment which is now at 24%. We interpret this unfortunate outcome as the result of a series of adverse shocks, compounded by disinflationary policies and by a flawed system of labour market institutions. Our aim is to explain the main sources of shocks to unemployment, and the most relevant features of their transmission mechanism. To do so we use a structural VAR approach in modelling the Spanish labour market.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1184.

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Date of creation: May 1995
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Handle: RePEc:cpr:ceprdp:1184

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Keywords: Persistence; Shocks; Spain; Unemployment;

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Cited by:
  1. Dobrescu, Emilian, 2007. "Double Conditioned Potential Output," Working Papers of Institute for Economic Forecasting 070701, Institute for Economic Forecasting.
  2. José Ignacio García Pérez & Yolanda Rebollo Sanz, 2005. "A Structural Estimation to Evaluate the Wage Penalty after Unemployment in Europe," Economic Working Papers at Centro de Estudios Andaluces E2005/15, Centro de Estudios Andaluces.
  3. Juan José Echavarría & Enrique López & Sergio Ocampo & Norberto Rodríguez, 2011. "Choques, instituciones laborales y desempleo en Colombia," BORRADORES DE ECONOMIA 009154, BANCO DE LA REPÚBLICA.
  4. Roberto Bande, 2002. "Ajustes Dinámicos en las Tasas de Paro: España Vs. Portugal," Documentos de trabajo - Analise Economica 0020, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
  5. Mark S Astley & Tony Yates, 1999. "Inflation and real disequilibria," Bank of England working papers 103, Bank of England.
  6. Puhani, Patrick A., 1997. "All Quiet on the Wage Front?," ZEW Discussion Papers 97-03, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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