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Decomposition of unemployment in Spain 1980-2019: Evolution of structural unemployment

Author

Listed:
  • Calero J. Miguel

    (PhD candidate in Economics University of Vic-Central University of Catalonia Vic, Barcelona, Spain Telf: 646857866)

  • Lagonigro Raymond

    (Department of Economics and Business DAM (Data Analysis and Modeling) Research group University of Vic-Central University of Catalonia Vic, Barcelona, Spain Telf: 938861222)

  • Madariaga Rafa

    (Department of Economics and Business DAM (Data Analysis and Modeling) Research group University of Vic-Central University of Catalonia Vic, Barcelona, Spain Telf: 938861222)

Abstract

This paper provides an estimation of the structural component of the Spain's persistently high unemployment over 1980-2019. Using an innovative approach, unemployment is decomposed into frictional, structural, and cyclical components. Frictional unemployment is estimated through stochastic frontier analysis, while regression techniques and time series filters determine structural and cyclical components. The methodology overcomes limited long-term data by standardizing job vacancies and projecting employment trends backward. Findings reveal structural unemployment as the dominant factor, shedding light on Spain's chronic unemployment challenges and providing a foundation for further exploration of underlying causes.

Suggested Citation

Handle: RePEc:vrs:labecl:v:2:y:2026:i:1:p:9-20:n:1002
DOI: 10.2478/lel-2026-0002
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JEL classification:

  • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
  • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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