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

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Author Info
Gilles Saint Paul

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

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Find related papers by JEL classification:
J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bell, D. & RA Hart, 1999. "Overtime Working in an Unregulated Labour Market," Working Papers Series 9904, University of Stirling, Department of Economics.
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  2. Bauer, Thomas & Zimmermann, Klaus F, 1999. "Overtime Work and Overtime Compensation in Germany," Scottish Journal of Political Economy, Scottish Economic Society, vol. 46(4), pages 419-36, September. [Downloadable!] (restricted)
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  3. Hart, Robert A. & Ritchie, Felix, 1999. "Tenure-based Wage Setting," IZA Discussion Papers 47, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Christian Belzil & Joergen Hansen, 1999. "Household Characteristics, Ability and Education: Evidence´ from a Dynamic Expected Utility Model," IZA Discussion Papers 43, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Hart, Robert A. & Malley, James R., 1999. "On the Cyclicality and Stability of Real Earnings," IZA Discussion Papers 45, Institute for the Study of Labor (IZA). [Downloadable!]
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Dolado, Juan J. & Garcia-Serrano, Carlos & Jimeno, Juan Francisco, 2001. "Drawing Lessons From the Boom of Temporary Jobs in Spain," CEPR Discussion Papers 2884, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Patrick A. Puhani, 2002. "A Note on Changes in the Wage and Unemployment Structures in Spain - Evidence from the Luxembourg Income Study," University of St. Gallen Department of Economics working paper series 2002 2002-27, Department of Economics, University of St. Gallen. [Downloadable!]
  3. 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. [Downloadable!]
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