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Flexibility vs. rigidity: Does Spain have the worst of both worlds?

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  • Gilles Saint Paul

Abstract

In this paper we study the structure of labor market flows in Spain and compare them with France and the US. We characterize a number of empirical regularities and stylized facts. One striking result is that the job finding rate is slightly higher than in France, while the jon loss rate is much higher, putting Spain half-way between France and the US. This suggests that while Spain has borne the full cost of its labor market reforms in terms of job precarity, the benefits in terms of job creation have been quite modest. We hypothesize that this has been due to the reform’s credibility being imperfect, which leads to expectation of reversal.

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Bibliographic Info

Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 450.

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Date of creation: Mar 2000
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Handle: RePEc:upf:upfgen:450

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Web page: http://www.econ.upf.edu/

Related research

Keywords: Unemployment; labor market flows; job finding; job loss; flexibility; temporary contracts; labor market reform; unemployment;

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References

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  1. Belzil, Christian & Hansen, Jörgen, 1999. "Household Characteristics, Ability and Education: Evidence from a Dynamic Expected Utility Model," IZA Discussion Papers 43, Institute for the Study of Labor (IZA).
  2. Bob Hart & Jim Malley, 1999. "On the Cyclicality and Stability of Real Earnings," Working Papers 1999_13, Business School - Economics, University of Glasgow.
  3. Bell, D. & RA Hart, 1999. "Overtime Working in an Unregulated Labour Market," Working Papers Series 9904, University of Stirling, Division of Economics.
  4. Hart, Robert A. & Ritchie, Felix, 1999. "Tenure-based Wage Setting," IZA Discussion Papers 47, Institute for the Study of Labor (IZA).
  5. Bauer, Thomas K. & Zimmermann, Klaus F., 1999. "Overtime Work and Overtime Compensation in Germany," IZA Discussion Papers 48, Institute for the Study of Labor (IZA).
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Cited by:
  1. Cristina Borra, 2010. "Childcare cost and Spanish mother’s labour force participation," Hacienda Pública Española, IEF, vol. 194(3), pages 9-40, October.
  2. Juan J Dolado & Carlos Garcia--Serrano & Juan F. Jimeno, 2002. "Drawing Lessons From The Boom Of Temporary Jobs In Spain," Economic Journal, Royal Economic Society, vol. 112(721), pages F270-F295, June.
  3. Franco Peracchi & Eliana Viviano, 2004. "An Empirical Micro Matching Model with an Application to Italy and Spain," Temi di discussione (Economic working papers) 538, Bank of Italy, Economic Research and International Relations Area.
  4. Alicia Adsera, 2011. "The interplay of employment uncertainty and education in explaining second births in Europe," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 25(16), pages 513-544, August.
  5. Maria Gutierrez-Domenech, 2002. "The Impact of the Labour Market on the Timing of Marriage and Births in Spain," CEP Discussion Papers dp0556, Centre for Economic Performance, LSE.
  6. Pau Baizán Munoz & Francesca Michielin & Francesco C. Billari, 2001. "Political economy and life course patterns: the heterogeneity of occupational, family and household trajectories of young spaniards," MPIDR Working Papers WP-2001-037, Max Planck Institute for Demographic Research, Rostock, Germany.

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