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The nineties in Spain: too much flexibility in the youth labour market?

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  • García-Pérez, J. Ignacio
  • Muñoz-Bullón, Fernando

Abstract

This paper examines movements into and out of employment in the Spanish youth labour market throughout the nineties. We analyze how differences in personal and economic circumstances influence such movements. In addition, we consider the importance of duration dependence in determining them. Our main findings are that: (i) Very young workers, women and those with lower qualification levels are more likely to be affected by high labour turnover; (ii) The existence of unobserved heterogeneity has important consequences in the unemployment hazard rate; (iii) In the 90's, employment hazard rates were substantially affected by the extensive use of fixed-term contracts, although the 1997 labour market reform seems to have reduced this hazard rate; (iv) The intervention of temporary help agencies has a positive impact on the likelihood of leaving unemployment, although only for short-term unemployed individuals; at the same time, however, the employment hazard rate is substantially higher within these agencies.

Suggested Citation

  • García-Pérez, J. Ignacio & Muñoz-Bullón, Fernando, 2003. "The nineties in Spain: too much flexibility in the youth labour market?," DEE - Working Papers. Business Economics. WB wb030302, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
  • Handle: RePEc:cte:wbrepe:wb030302
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    References listed on IDEAS

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    4. Devine, Theresa J. & Kiefer, Nicolas M., 1991. "Empirical Labor Economics: The Search Approach," OUP Catalogue, Oxford University Press, number 9780195059366.
    5. J. Ignacio García Pérez & Fernando Muñoz Bullón, 2001. "Temporary help agencies and workers' occupational mobility," Economics Working Papers 554, Department of Economics and Business, Universitat Pompeu Fabra.
    6. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
    7. Alba, Alfonso, 1991. "Mismatch in the Spanish labor market : overeducation?," UC3M Working papers. Economics 2800, Universidad Carlos III de Madrid. Departamento de Economía.
    8. Olympia Bover & Manuel Arellano & Samuel Bentolila, 2002. "Unemployment Duration, Benefit Duration and the Business Cycle," Economic Journal, Royal Economic Society, vol. 112(479), pages 223-265, April.
    9. Mortensen, Dale T., 1987. "Job search and labor market analysis," Handbook of Labor Economics,in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 2, chapter 15, pages 849-919 Elsevier.
    10. Narendranathan, W & Stewart, Mark B, 1993. "How Does the Benefit Effect Vary as Unemployment Spells Lengthen?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(4), pages 361-381, Oct.-Dec..
    11. Nickell, Stephen J, 1979. "Estimating the Probability of Leaving Unemployment," Econometrica, Econometric Society, vol. 47(5), pages 1249-1266, September.
    12. J. Ignacio García Pérez, 2001. "Non-stationary job search when jobs are not forever: A structural estimation," Economics Working Papers 556, Department of Economics and Business, Universitat Pompeu Fabra.
    13. Flinn, C. & Heckman, J., 1982. "New methods for analyzing structural models of labor force dynamics," Journal of Econometrics, Elsevier, vol. 18(1), pages 115-168, January.
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    Cited by:

    1. J. Ignacio García-Pérez & Fernando Muñoz-Bullón, 2005. "Temporary Help Agencies and Occupational Mobility," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(2), pages 163-180, April.
    2. Guell, Maia & Petrongolo, Barbara, 2007. "How binding are legal limits? Transitions from temporary to permanent work in Spain," Labour Economics, Elsevier, vol. 14(2), pages 153-183, April.
    3. José Ignacio García Pérez, 2003. "Non-stationary Job Search When Jobs Do Not Last Forever: A Structural Estimation to Evaluate Alternative Unemployment Insurance Systems," Economic Working Papers at Centro de Estudios Andaluces E2003/49, Centro de Estudios Andaluces.
    4. Verheul, Ingrid & Van Stel, André & Thurik , Roy & Urbano, David, 2006. "The Relationship between Business Ownership and Unemployment in Spain: A Matter of Quantity or Quality?/La relación entre el autoempleo y el desempleo en España: Una cuestión de cantidad o de calidad?," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 24, pages 435-457, Agosto.

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