A Note on Changes in the Wage and Unemployment Structures in Spain - Evidence from the Luxembourg Income Study
This note tests whether the extraordinary rise in Spanish unemployment in the 1980s can be traced back to rigidities in the wage structure in the face of relative net demand shocks against the unskilled (this claim is also known as the ‘Krugman hypothesis’). I can establish that youth joblessness is key to the Spanish unemployment problem, but sampling procedures in the data set make it impossible to track the youth unemployment problem across time in a satisfactory way. Even though high youth unemployment is consistent with the Krugman hypothesis, substantial skill upgrading of the Spanish labour force in the1980s explains why the low education groups did not experience an increase in relative unemployment.
|Date of creation:||Sep 2002|
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- Goerlich, Francisco J & Mas, Matilde, 2001. "Inequality in Spain 1973-91: Contribution to a Regional Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(3), pages 361-78, September.
- Kugler, Adriana & Jimeno, Juan F. & Hernanz, Virginia, 2002.
"Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labor Market Reforms,"
IZA Discussion Papers
657, Institute for the Study of Labor (IZA).
- Adriana Kugler & Juan F. Jimeno & Virginia Hernanz, 2002. "Employment consequences of restrictive permanent contracts: Evidence from Spanish labor market reforms," Economics Working Papers 651, Department of Economics and Business, Universitat Pompeu Fabra.
- Hernanz, Virginia & Jimeno, Juan F & Kugler, Adriana D., 2003. "Employment Consequences of Restrictive Permanent Contracts: Evidence from Spanish Labour Market Reforms," CEPR Discussion Papers 3724, C.E.P.R. Discussion Papers.
- Puhani, Patrick A., 2002. "Relative wage and unemployment changes in Poland: microeconometric evidence," Economic Systems, Elsevier, vol. 26(2), pages 99-126, June.
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