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Reforming an Insider-Outsider Labor Market: The Spanish Experience

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  • Bentolila, Samuel
  • Jimeno, Juan Francisco.
  • Dolado, Juan José

Abstract

This paper presents a case study on reforming a very dysfunctional labor market with a deep insider-outsider divide, namely the Spanish case. We show how a dual market, with permanent and temporary employees makes real reform much harder, and leads to purely marginal changes that do not alter the fundamental features of labor market institutions. While the Great Recession and the start of the sovereign debt crisis triggered two labor reforms, the political economy equilibrium has not allowed them to be transformational enough.

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Bibliographic Info

Paper provided by FEDEA in its series Working Papers with number 2012-01.

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Date of creation: Jan 2012
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Handle: RePEc:fda:fdaddt:2012-01

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  1. Saint-Paul, Gilles, 2000. "The Political Economy of Labour Market Institutions," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198293323, October.
  2. Bentolila, Samuel & Cahuc, Pierre & Dolado, Juan J. & Le Barbanchon, Thomas, 2010. "Two-Tier Labor Markets in the Great Recession: France vs. Spain," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8152, C.E.P.R. Discussion Papers.
  3. Juan F. Jimeno & Carlos Thomas, 2011. "Collective bargaining, firm heterogeneity and unemployment," Banco de Espa�a Working Papers, Banco de Espa�a 1131, Banco de Espa�a.
  4. Dolado, Juan J. & Garcia-Serrano, Carlos & Jimeno, Juan Francisco, 2001. "Drawing Lessons From the Boom of Temporary Jobs in Spain," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2884, C.E.P.R. Discussion Papers.
  5. Martin Werding (ed.), 2006. "Structural Unemployment in Western Europe: Reasons and Remedies," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262232464, December.
  6. Alfonso ARPAIA & Nicola CURCI, . "EU labour market behaviour during the Great Recession," Working Papers, Department of the Treasury, Ministry of the Economy and of Finance wp2010-6, Department of the Treasury, Ministry of the Economy and of Finance.
  7. James Costain & Juan F. Jimeno & Carlos Thomas, 2010. "Employment fluctuations in a dual labor market," Banco de Espa�a Working Papers, Banco de Espa�a 1013, Banco de Espa�a.
  8. Samuel Bentolila & Juan Jose Dolado & Juan F. Jimeno, 2008. "Two-tier Employment Protection Reforms: The Spanish Experience," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 6(4), pages 49-56, December.
  9. Ángel Gavilán & Pablo Hernández de Cos & Juan F. Jimeno & Juan A. Rojas, 2011. "Fiscal policy, structural reforms and external imbalances: a quantitative evaluation for Spain," Banco de Espa�a Working Papers, Banco de Espa�a 1107, Banco de Espa�a.
  10. Samuel Bentolila & Juan F. Jimeno, 2003. "Spanish Unemployment: The End of the Wild Ride?," CESifo Working Paper Series 940, CESifo Group Munich.
  11. Juan José Dolado & Florentino Felgueroso & Marcel Jansen, 2010. "El conflicto entre la demanda de flexibilidad laboral y la resistencia a la reforma del mercado de trabajo en España," Economic Reports 06-2010, FEDEA.
  12. J. Ignacio Conde-Ruiz & Florentino Felgueroso & J. Ignacio García-Pérez, 2011. "Reforma Laboral 2010: Una Primera Evaluación Y Propuestas De Mejora," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 19(3), pages 147-180, Winter.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Reformas del mercado de trabajo, sindicatos y partidos socialdemócratas
    by Cives in Politikon on 2012-05-08 14:48:11
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Cited by:
  1. Eichhorst, Werner & Hinte, Holger & Rinne, Ulf, 2013. "Youth Unemployment in Europe: What to Do about It?," IZA Policy Papers, Institute for the Study of Labor (IZA) 65, Institute for the Study of Labor (IZA).
  2. Giuseppe Bertola & John Driffill & Harold James & Hans-Werner Sinn & Jan-Egbert Sturm & Ákos Valentinyi, 2013. "Chapter 3: Labour Market Reform and Youth Unemployment," EEAG Report on the European Economy, CESifo Group Munich, CESifo Group Munich, vol. 0, pages 73-94, 02.
  3. Rhee, Hyuk-jae & Turdaliev, Nurlan, 2013. "Optimal monetary policy in a small open economy with staggered wage and price contracts," Journal of International Money and Finance, Elsevier, Elsevier, vol. 37(C), pages 306-323.
  4. Guillaud, Elvire & Marx, Paul, 2013. "Preferences for Employment Protection and the Insider-Outsider Divide," IZA Discussion Papers 7569, Institute for the Study of Labor (IZA).
  5. Álvarez de Toledo, Pablo & Núñez, Fernando & Usabiaga, Carlos, 2014. "An empirical approach on labour segmentation. Applications with individual duration data," Economic Modelling, Elsevier, Elsevier, vol. 36(C), pages 252-267.
  6. Johannes Schweighofer, 2012. "Ohne Perspektive - Jugendliche auf segmentierten Arbeitsmärkten in der EU," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 38(4), pages 749-770.
  7. repec:mod:depeco:0010 is not listed on IDEAS
  8. Eichhorst, Werner & Hinte, Holger & Rinne, Ulf, 2013. "Jugendarbeitslosigkeit in Europa: Status Quo und (keine?) Perspektiven," IZA Standpunkte, Institute for the Study of Labor (IZA) 57, Institute for the Study of Labor (IZA).

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