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Reforming an Insider-Outsider Labor Market: The Spanish Experience

  • Bentolila, Samuel
  • Jimeno, Juan Francisco.
  • Dolado, Juan José

This paper presents a case study on reforming a very dysfunctional labor market with a deep insider-outsider divide, namely the Spanish case. We show how a dual market, with permanent and temporary employees makes real reform much harder, and leads to purely marginal changes that do not alter the fundamental features of labor market institutions. While the Great Recession and the start of the sovereign debt crisis triggered two labor reforms, the political economy equilibrium has not allowed them to be transformational enough.

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File URL: http://documentos.fedea.net/pubs/dt/2012/dt-2012-01.pdf
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Paper provided by FEDEA in its series Working Papers with number 2012-01.

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Date of creation: Jan 2012
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Handle: RePEc:fda:fdaddt:2012-01
Contact details of provider: Web page: http://www.fedea.net

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  1. Alfonso Arpaia & Nicola Curci, 2010. "EU labour market behaviour during the Great Recession," European Economy - Economic Papers 405, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
  2. Samuel Bentolila & Juan Jose Dolado & Juan F. Jimeno, 2008. "Two-tier Employment Protection Reforms: The Spanish Experience," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 6(4), pages 49-56, December.
  3. Samuel Bentolila & Juan F. Jimeno, 2003. "Spanish Unemployment: The End of the Wild Ride?," CESifo Working Paper Series 940, CESifo Group Munich.
  4. James Costain & Juan F. Jimeno & Carlos Thomas, 2010. "Employment fluctuations in a dual labor market," Banco de Espa�a Working Papers 1013, Banco de Espa�a.
  5. Jimeno, Juan F. & Thomas, Carlos, 2013. "Collective bargaining, firm heterogeneity and unemployment," European Economic Review, Elsevier, vol. 59(C), pages 63-79.
  6. Juan J Dolado & Carlos Garcia--Serrano & Juan F. Jimeno, 2002. "Drawing Lessons From The Boom Of Temporary Jobs In Spain," Economic Journal, Royal Economic Society, vol. 112(721), pages F270-F295, June.
  7. Saint-Paul, Gilles, 2000. "The Political Economy of Labour Market Institutions," OUP Catalogue, Oxford University Press, number 9780198293323, March.
  8. Bentolila, Samuel & Cahuc, Pierre & Dolado, Juan J. & Le Barbanchon, Thomas, 2010. "Two-Tier Labor Markets in the Great Recession: France vs. Spain," CEPR Discussion Papers 8152, C.E.P.R. Discussion Papers.
  9. Martin Werding (ed.), 2006. "Structural Unemployment in Western Europe: Reasons and Remedies," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232464, June.
  10. Ángel Gavilán & Pablo Hernández de Cos & Juan F. Jimeno & Juan A. Rojas, 2011. "Fiscal policy, structural reforms and external imbalances: a quantitative evaluation for Spain," Banco de Espa�a Working Papers 1107, Banco de Espa�a.
  11. J. Ignacio Conde-Ruiz & Florentino Felgueroso & J. Ignacio García-Pérez, 2011. "Reforma Laboral 2010: Una Primera Evaluación Y Propuestas De Mejora," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 19(3), pages 147-180, Winter.
  12. Juan José Dolado & Florentino Felgueroso & Marcel Jansen, 2010. "El conflicto entre la demanda de flexibilidad laboral y la resistencia a la reforma del mercado de trabajo en España," Economic Reports 06-2010, FEDEA.
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