Gross Worker Flows: How Does the Spanish Evidence Fit the Stylized Facts?
This paper examines gross worker flows in Spain. Unemployment inflows are counter-cyclical while outflows are a-cyclical. Changes introduced in the Spanish labour market have increased the magnitude and variability of both flows, in particular inflows, without affecting the a-cyclical behaviour of outflows. Engagements and flows into employment from non-employment are pro-cyclical. Separations are a-cyclical, while flows out of employment to non-employment are counter-cyclical. Hence job-to-job movements must be pro-cyclical. Engagements and separations have responded positively to a wider variety of contractual forms. The Spanish evidence seems to be reasonably explained by the existence of a dual labour market between workers under permanent and fixed-term job contracts.
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