EconPapers    
Economics at your fingertips  
 

Temping fates in Spain: hours and employment in a dual labor market during the Great Recession and COVID-19

Cristina Lafuente, Raul Santaeulalia-Llopis and Ludo Visschers ()
Additional contact information
Cristina Lafuente: Universidad Carlos III de Madrid and European University Institute

SERIEs: Journal of the Spanish Economic Association, 2022, vol. 13, issue 1, No 4, 145 pages

Abstract: Abstract We investigate the behavior of aggregate hours supplied by workers in permanent (open-ended) contracts and temporary contracts, distinguishing changes in employment (extensive margin) and hours per worker (intensive margin). We focus on the differences between the Great Recession and the start of the COVID-19 Recession. In the Great Recession, the loss in aggregate hours is largely accounted for by employment losses (hours per worker did not adjust) and initially mainly by workers in temporary contracts. In contrast, in the early stages of the COVID-19 Recession, approximately sixty percent of the drop in aggregate hours is accounted for by permanent workers that do not only adjust hours per worker (beyond average) but also face employment losses—accounting for one-third of the total employment losses in the economy. We argue that our comparison across recessions allows for a more general discussion on the impact of adjustment frictions in the dual labor market and the effects policy, in particular the short-time work policy (ERTE) in Spain.

Keywords: Recessions; Dual labor markets; COVID-19; Spain; Furloughs (search for similar items in EconPapers)
JEL-codes: E32 J21 J64 J65 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s13209-021-00257-1 Abstract (text/html)

Related works:
Working Paper: Temping Fates in Spain: Hours and Employment in a Dual Labor Market during the Great Recession and Covid-19 (2021) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:series:v:13:y:2022:i:1:d:10.1007_s13209-021-00257-1

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/13209

DOI: 10.1007/s13209-021-00257-1

Access Statistics for this article

SERIEs: Journal of the Spanish Economic Association is currently edited by Nezih Guner

More articles in SERIEs: Journal of the Spanish Economic Association from Springer, Spanish Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2023-01-26
Handle: RePEc:spr:series:v:13:y:2022:i:1:d:10.1007_s13209-021-00257-1