The Spanish cyclicality of the user cost of labour
Juan Sanchis-llopis () and
Antonio Cutanda ()
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Juan Sanchis-llopis: Universidad de Valencia and ERICES
Antonio Cutanda: Universidad de Valencia
Economics Bulletin, 2020, vol. 40, issue 3, 1893-1899
This paper contributes to the study of the Spanish unemployment puzzle: while unemployment and temporary employment rates are among the highest in the E.U., productivity is very low and wages show a rigidity similar to other European countries. We estimate the sensitivity of the user cost of labour (and wages) to aggregate unemployment (i.e., cyclicality), using a pseudo-panel built by combining two Spanish microeconomic surveys (the Labour Force Survey and the Family Expenditure and Income Survey) for the period 1987-1997. We find that the user cost of labour is more procyclical than average wages, what provides evidence of wage rigidity.
Keywords: Cyclicality; user cost of labour; pseudo-panel data (search for similar items in EconPapers)
JEL-codes: J3 E2 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-20-00051
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