IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Promoting Permanent Employment: Lessons From Spain

Registered author(s):

    This paper presents the first joint evaluation of the two major labour market reforms implemented in Spain to foster permanent employment in 1994 and 1997. The 1994 reform restored the principle of causality in the application of temporary contracts and the 1997 reform introduced a new permanent contract with lower payroll taxes and dismissal costs than the ordinary one. To evaluate these non-targeted reforms I present a family of semiparametric estimators that predict the outcome that would have been observed in the absence of a reform by exploiting the time series variation of the outcome in the pre-reform period. Alternative counterfactuals are also explored by means of conventional between-groups estimators. Estimates using the Spanish Labour Force Survey indicate that employers did not change their contract conversion practices in response to either the 1994 or the 1997 reform. The 1997 reform succeed in increasing unemployment to permanent employment transition probabilities for most groups of unemployed workers, including the middle-aged. This result rejects the natural experiment research design in existing papers analyzing the effects of the 1997 reform.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.cemfi.es/ftp/wp/0810.pdf
    Download Restriction: no

    Paper provided by CEMFI in its series Working Papers with number wp2008_0810.

    as
    in new window

    Length:
    Date of creation: Jun 2008
    Date of revision:
    Handle: RePEc:cmf:wpaper:wp2008_0810
    Contact details of provider: Postal: Casado del Alisal, 5, 28014 Madrid
    Phone: 914290551
    Fax: 914291056
    Web page: http://www.cemfi.es/
    Email:


    More information through EDIRC

    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.:

    as in new window
    1. O Blanchard & A Landier, 2002. "The Perverse Effects of Partial Labour Market Reform: fixed--Term Contracts in France," Economic Journal, Royal Economic Society, vol. 112(480), pages F214-F244, June.
    2. Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2001. "Evaluating the employment impact of a mandatory job search assistance program," IFS Working Papers W01/20, Institute for Fiscal Studies.
    3. Elisabetta Trevisan, 2007. "Job Security and New Restrictive Permanent Contracts. Are Spanish Workers More Worried of Losing Their Job?," Working Papers 2007_02, Department of Economics, University of Venice "Ca' Foscari".
    4. Alba-Ramirez, Alfonso, 1994. "Formal Training, Temporary Contracts, Productivity and Wages in Spain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(2), pages 151-70, May.
    5. Giuseppe Bertola & Francine Blau & Lawrence Kahn, 2007. "Labor market institutions and demographic employment patterns," Journal of Population Economics, Springer, vol. 20(4), pages 833-867, October.
    6. Maria Guadalupe, 2002. "The hidden costs of fixed term contracts: the impact on work accidents," LSE Research Online Documents on Economics 20064, London School of Economics and Political Science, LSE Library.
    7. Richard Layard & Stephen Nickell, 1998. "Labour Market Institutions and Economic Performance," CEP Discussion Papers dp0407, Centre for Economic Performance, LSE.
    8. Adriana Kugler & Juan F. Jimeno & Virginia Hernanz, . "Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labor Market Reforms," Working Papers 2003-14, FEDEA.
    9. César Alonso-Borrego & Jesús Fernández-Villaverde & José E. Galdón-Sánchez, 2004. "Evaluating Labor Market Reforms: A General Equilibrium Approach," PIER Working Paper Archive 04-016, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    10. Joshua Angrist & Alan Krueger, 1998. "Empirical Strategies in Labor Economics," Working papers 98-7, Massachusetts Institute of Technology (MIT), Department of Economics.
    11. Dolado, Juan J. & Garcia-Serrano, Carlos & Jimeno, Juan F, 2001. "Drawing Lessons From the Boom of Temporary Jobs in Spain," CEPR Discussion Papers 2884, C.E.P.R. Discussion Papers.
    12. Blundell, Richard William & Costa Dias, Monica & Meghir, Costas & Van Reenen, John, 2003. "Evaluating the Employment Impact of a Mandatory Job Search Programme," CEPR Discussion Papers 3786, C.E.P.R. Discussion Papers.
    13. De la Rica Goiricelaya, Sara & Iza Padilla, María Amaya, 2003. "Career Planning in Spain: Do temporary contracts delay marriage and motherhood?," DFAEII Working Papers 2003-05, University of the Basque Country - Department of Foundations of Economic Analysis II.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:cmf:wpaper:wp2008_0810. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Araceli Requerey)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.