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Regional labour markets in Spain: Can flexibility and local democracy reduce inefficiencies?

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  • Ambra Poggi

Abstract

By applying a stochastic production frontier approach, this paper investigates regional inefficiencies of job creation in Spain over the period 2006–2012. This paper represents a first attempt to test whether a more flexible labour market as designed by the 2010 reform reduces regional inefficiencies. Results suggest that the 2010 reform appears to have improved on average the efficiency of the Spanish labour market even if regional differences persisted over time. The paper also investigates the importance of local democracy for the labour market finding that local democracy positively influences regional efficiency. Mediante la aplicación de un enfoque de frontera de producción estocástica, este artículo investiga las ineficiencias regionales de la creación de empleo en España durante el período 2006–2012. El artículo representa un primer intento de comprobar si un mercado laboral más flexible, tal como fue diseñado por la reforma de 2010, reduce las ineficiencias regionales. Los resultados sugieren que la reforma de 2010 parece haber mejorado, en promedio, la eficiencia del mercado laboral español, a pesar de la persistencia de diferencias regionales a lo largo del tiempo. El artículo investiga también la importancia de la democracia local para el hallazgo del mercado laboral de que la democracia local influye positivamente en la eficiencia regional. 本稿では、確立的生産フロンティアアプローチを用いて、2006年~2012年のスペインにおける地域の雇用創出の非効率性を検討する。今回、初めての試みとして、2010年の労働改革が意図したよりフレキシブルな労働市場により地域の非効率性が削減されたか否かを検証する。結果から、2010年の改革は、概して、経時的な地域間の差があったもののスペインの労働市場の効率を改善したようである。また、労働市場に対する地域の民主主義社会の重要性を検討したところ、それが地域の効率性に正の影響を及ぼしていることが考えられる。

Suggested Citation

  • Ambra Poggi, 2019. "Regional labour markets in Spain: Can flexibility and local democracy reduce inefficiencies?," Papers in Regional Science, Wiley Blackwell, vol. 98(3), pages 1499-1516, June.
  • Handle: RePEc:bla:presci:v:98:y:2019:i:3:p:1499-1516
    DOI: 10.1111/pirs.12422
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