IDEAS home Printed from https://ideas.repec.org/p/oec/ecoaaa/845-en.html
   My bibliography  Save this paper

Reforming the Labour Market in Spain

Author

Listed:
  • Anita Wölfl

    (OECD)

  • Juan S. Mora-Sanguinetti

    (Banco de España-Eurosystem)

Abstract

After steady employment growth since the 1990s, Spain has experienced the sharpest increase in unemployment among OECD countries during the crisis, amplified by structural problems of the labour market. Very high de facto severance payment of permanent contracts has resulted in a rigid dual market with adverse effects on unemployment and productivity. The collective wage bargaining system has hindered firms from adapting to macroeconomic shocks exacerbating their negative effects on the labour market. The recent labour market reform legislation is a positive step to reduce excessive protection of workers in permanent contracts, although some uncertainty remains on how courts will interpret it. It also makes it easier for firms to opt out from higher level collective agreements. The large drop-out rate from lower secondary education is an important factor explaining very high unemployment among young workers. Better access of young people to training is an effective tool to keep them out of a depressed labour market. Finally, the matching of people to jobs, notably through the public employment services, needs to be made more efficient, all the more so under currently tight fiscal constraints. Although the recent reform allows private for-profit firms to provide placement services, more needs to be done. Performance of regional public employment services should be benchmarked and incentives of unemployment benefit recipients to search for a job increased. Réformer le marché du travail en Espagne Après avoir connu une croissance régulière de l’emploi durant les années 90, l’Espagne a accusé la plus forte hausse du chômage de tous les pays de l’OCDE pendant la crise, amplifiée par les problèmes structurels du marché du travail. Les indemnités de licenciement très élevées obtenues de facto par les titulaires de contrats permanents ont créé des rigidités et abouti à un dualisme du marché du travail qui a des effets négatifs sur l’emploi et la productivité. Le système de négociation collective des salaires a empêché les entreprises de s’adapter aux chocs macroéconomiques et donc d’en atténuer l’impact sur l’emploi. La législation de réforme du marché du travail devrait permettre de réduire la protection excessive dont bénéficie l’emploi permanent, mais certaines incertitudes subsistent quant à la façon dont ce texte sera interprété par les tribunaux. Ces dispositions permettent plus aisément aux entreprises de ne pas appliquer les conventions collectives de haut niveau. Le taux élevé d’abandon des études au premier cycle de l’enseignement secondaire explique pour beaucoup le très fort chômage qui sévit chez les jeunes. Élargir l’accès des jeunes à la formation serait un moyen efficace de les tenir à l’écart d’un marché du travail déprimé. Enfin, il y aurait lieu d’améliorer l’efficacité des activités de placement, notamment au travers des services publics de l’emploi, et ce d’autant plus compte tenue des contraintes budgétaires actuelles. La réforme récente autorise les entreprises à but lucratif à offrir des services de placement, mais il faut aller plus loin. Dans cette optique, il faudrait soumettre les services publics régionaux de l’emploi à des évaluations de performance et inciter davantage les chômeurs indemnisés à rechercher un emploi.

Suggested Citation

  • Anita Wölfl & Juan S. Mora-Sanguinetti, 2011. "Reforming the Labour Market in Spain," OECD Economics Department Working Papers 845, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:845-en
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1787/5kghtchh277h-en
    Download Restriction: no

    References listed on IDEAS

    as
    1. Philip Du Caju & Erwan Gautier & Daphne Momferatu & Melanie Ward-Warmedinger, 2009. "Institutional Features of Wage Bargaining in 23 European Countries, the US and Japan," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 12(2), pages 57-108, Winter.
    2. Brändle Tobias & Heinbach Wolf Dieter, 2013. "Opening Clauses in Collective Bargaining Agreements: More Flexibility to Save Jobs?," Review of Economics, De Gruyter, vol. 64(2), pages 159-192, August.
    3. Helmut Hofer, 2007. "The Severance Pay Reform in Austria ("Abfertigung neu")," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 5(4), pages 41-48, 06.
    4. Giuseppe Nicoletti & Stefano Scarpetta, 2005. "Product Market Reforms and Employment in OECD Countries," OECD Economics Department Working Papers 472, OECD Publishing.
    5. Samuel Bentolila & Juan F. Jimeno, "undated". "Spanish Unemployment: The End of the Wild Ride?," Working Papers 2003-10, FEDEA.
    6. Florentino Felgueroso & Manuel Hidalgo & SergiJiménez Martín, 2010. "Explaining the fall of the skill wage premium in Spain," Working Papers 2010-19, FEDEA.
    7. Samuel Bentolila & Juan Jose Dolado & Juan F. Jimeno, 2008. "Two-tier Employment Protection Reforms: The Spanish Experience," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 6(4), pages 49-56, December.
    8. Andrea Bassanini & Romain Duval, 2006. "Employment Patterns in OECD Countries: Reassessing the Role of Policies and Institutions," OECD Social, Employment and Migration Working Papers 35, OECD Publishing.
    9. James Costain & Juan F. Jimeno & Carlos Thomas, 2010. "Employment fluctuations in a dual labour market," Economic Bulletin, Banco de España;Economic Bulletin Homepage, issue APR, April.
    10. 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.
    11. Reinhard Koman & Ulrich Schuh & Andrea Weber, 2005. "The Austrian Severance Pay Reform: Toward a Funded Pension Pillar," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(3), pages 255-274, September.
    12. Zwick, Thomas, 2002. "Continuous Training and Firm Productivity in Germany," ZEW Discussion Papers 02-50, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    13. Rinne, Ulf & Uhlendorff, Arne & Zhao, Zhong, 2008. "Vouchers and Caseworkers in Public Training Programs: Evidence from the Hartz Reform in Germany," IZA Discussion Papers 3910, Institute for the Study of Labor (IZA).
    14. Romain Duval & Jørgen Elmeskov & Lukas Vogel, 2007. "Structural Policies and Economic Resilience to Shocks," OECD Economics Department Working Papers 567, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Deakin, Simon., 2013. "Addressing labour market segmentation : the role of labour law," ILO Working Papers 994834483402676, International Labour Organization.
    2. Barge-Gil, Andrés & Conti, Annamaria, 2013. "Firm R&D units and outsourcing partners: A matching story," MPRA Paper 44090, University Library of Munich, Germany.
    3. Escudero, Verónica. & Khatiwada, Sameer., 2011. "Spain : quality jobs for a new economy," Studies on Growth with Equity, International Labour Office, Research Department, number 994653943402676, June.
    4. Amaia Altuzarra, 2015. "Measuring Unemployment Persistence by Age and Gender," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 110-133, December.
    5. Simon Deakin, 2013. "Addressing Labour Market Segmentation: The Role of Labour Law," Working Papers wp446, Centre for Business Research, University of Cambridge.
    6. repec:ilo:ilowps:483344 is not listed on IDEAS
    7. Molina, Oscar. & Miguélez, Fausto., 2013. "From negotiation to imposition : social dialogue in austerity times in Spain," ILO Working Papers 994833443402676, International Labour Organization.
    8. Escudero, Verónica & Khatiwada, Sameer, 2011. "Spain : quality jobs for a new economy," Studies on Growth with Equity 465394, International Labour Office, Research Department.
    9. Andrea ÉLTETÕ, 2011. "The economic crisis and its management in Spain," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 2, pages 41-55, June.
    10. repec:ilo:ilowps:483448 is not listed on IDEAS

    More about this item

    Keywords

    appariement entre offre et demande de travail; collective bargaining system; continuous training; employment protection; Espagne; formation continue; matching process; prestations de chômage; protection de l'emploi; Spain; système de négociation collective; unemployment benefits;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • I2 - Health, Education, and Welfare - - Education
    • J0 - Labor and Demographic Economics - - General
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:845-en. 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: (). General contact details of provider: http://edirc.repec.org/data/edoecfr.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.