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Employment Protection by Job Retention Schemes in a Segmented Labor Market

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Listed:
  • Raquel Carrasco
  • Virginia Hernanz
  • Juan Francisco Jimeno

Abstract

This article examines the effects of Job Retention Schemes (JRS) on the employment status and wages of permanent and temporary workers in the short and medium term during the COVID-19 crisis in Spain. Traditionally, labour market adjustments in Spain have relied on changes in temporary employment, while permanent workers have enjoyed greater job stability due to strict firing regulations. The main policy response to the COVID-19 crisis was the extension of JRS across sectors, occupations, and, for the first time, to temporary workers. Using data from administrative records, the analysis reveals that, while the protection offered by JRS did not entirely bridge the gap with permanent workers, it did provide temporary workers with higher employment probabilities and wage gains after the crisis compared to similar workers pushed into unemployment.

Suggested Citation

  • Raquel Carrasco & Virginia Hernanz & Juan Francisco Jimeno, 2024. "Employment Protection by Job Retention Schemes in a Segmented Labor Market," Studies on the Spanish Economy eee2024-25, FEDEA.
    • Handle: RePEc:fda:fdaeee:eee2024-25
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    References listed on IDEAS

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    Cited by:

    1. J. Ignacio Conde-Ruiz & Jorge Fernández Orellana & Manu García & Daniel Pérez Gutiérrez, 2025. "Protección Laboral en un Mercado Dual: Lecciones de una Pandemia," Studies on the Spanish Economy eee2025-18, FEDEA.

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