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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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References

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  1. Samuel Bentolila & Juan F. Jimeno, 2003. "Spanish Unemployment: The End of the Wild Ride?," CESifo Working Paper Series 940, CESifo Group Munich.
  2. Bentolila, Samuel & Cahuc, Pierre & Dolado, Juan José & Le Barbanchon, Thomas, 2010. "Two-Tier Labor Markets in the Great Recession: France vs. Spain," IZA Discussion Papers 5340, Institute for the Study of Labor (IZA).
  3. Arpaia, Alfonso & Curci, Nicola, 2010. "EU labour market behaviour during the Great Recession," MPRA Paper 22393, University Library of Munich, Germany.
  4. José Ignacio Conde Ruiz & Florentino Felgueroso & Jose Ignacio García Pérez, 2011. "Reforma Laboral 2010: Una primera evaluación y propuestas de mejora," Economic Reports 01-2011, FEDEA.
  5. Dolado, Juan José & García-Serrano, Carlos & Jimeno, Juan F., . "Drawing Lessons from the Boom of Temporary Jobs in Spain," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/3263, Universidad Carlos III de Madrid.
  6. 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.
  7. 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, vol. 6(4), pages 49-56, December.
  8. Martin Werding (ed.), 2006. "Structural Unemployment in Western Europe: Reasons and Remedies," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232464.
  9. Dolado, Juan José & Bentolila, Samuel, 1994. "Labour Flexibility and Wages : lessons from Spain," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/3309, Universidad Carlos III de Madrid.
  10. 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 España Working Papers 1107, Banco de España.
  11. James Costain & Juan F. Jimeno & Carlos Thomas, 2010. "Employment fluctuations in a dual labor market," Banco de España Working Papers 1013, Banco de España.
  12. Saint-Paul, Gilles, 2000. "The Political Economy of Labour Market Institutions," OUP Catalogue, Oxford University Press, number 9780198293323.
  13. Juan F. Jimeno & Carlos Thomas, 2011. "Collective bargaining, firm heterogeneity and unemployment," Banco de España Working Papers 1131, Banco de España.
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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. 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, vol. 0, pages 73-94, 02.

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