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Flexibility vs. rigidity: Does Spain have the worst of both worlds?

  • Gilles Saint Paul

In this paper we study the structure of labor market flows in Spain and compare them with France and the US. We characterize a number of empirical regularities and stylized facts. One striking result is that the job finding rate is slightly higher than in France, while the jon loss rate is much higher, putting Spain half-way between France and the US. This suggests that while Spain has borne the full cost of its labor market reforms in terms of job precarity, the benefits in terms of job creation have been quite modest. We hypothesize that this has been due to the reform’s credibility being imperfect, which leads to expectation of reversal.

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File URL: http://www.econ.upf.edu/docs/papers/downloads/450.pdf
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Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 450.

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Date of creation: Mar 2000
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Handle: RePEc:upf:upfgen:450
Contact details of provider: Web page: http://www.econ.upf.edu/

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  1. Bauer, Thomas K. & Zimmermann, Klaus F., 1999. "Overtime Work and Overtime Compensation in Germany," IZA Discussion Papers 48, Institute for the Study of Labor (IZA).
  2. Belzil, Christian & Hansen, Jörgen, 1999. "Household Characteristics, Ability and Education: Evidence from a Dynamic Expected Utility Model," IZA Discussion Papers 43, Institute for the Study of Labor (IZA).
  3. Bell, D. & RA Hart, 1999. "Overtime Working in an Unregulated Labour Market," Working Papers Series 9904, University of Stirling, Division of Economics.
  4. Bob Hart & Jim Malley, 1999. "On the Cyclicality and Stability of Real Earnings," Working Papers 1999_13, Business School - Economics, University of Glasgow.
  5. Hart, Robert A. & Ritchie, Felix, 1999. "Tenure-based Wage Setting," IZA Discussion Papers 47, Institute for the Study of Labor (IZA).
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