Temping Fates in Spain: Hours and Employment in a Dual Labor Market during the Great Recession and Covid-19

Ludo Visschers, Cristina Lafuente and Raül Santaeulà lia-Llopis
Authors registered in the RePEc Author Service: Raul Santaeulalia-Llopis ()

No 1282, Working Papers from Barcelona School of Economics

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 hours loss 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 (ERTEs) in Spain.

Keywords: great recession; employment; labor market; COVID-19; hours; temporary; permanent; dual (search for similar items in EconPapers)
JEL-codes: E24 J21 J23 J24 (search for similar items in EconPapers)
Date: 2021-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Journal Article: Temping fates in Spain: hours and employment in a dual labor market during the Great Recession and COVID-19 (2022)
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