Reforming an Insider-Outsider Labor Market: The Spanish Experience

Samuel Bentolila, Juan Dolado and Juan F Jimeno

No 6186, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper presents a case study on reforming a very dysfunctional labor market with a deep insider-outsider divide, namely the Spanish case. We show how a dual market, with permanent and temporary employees makes real reform much harder, and leads to purely marginal changes that do not alter the fundamental features of labor market institutions. While the Great Recession and the start of the sovereign debt crisis triggered two labor reforms, the political economy equilibrium has not allowed them to be transformational enough.

Keywords: Great Recession; labor market reform; dualism; temporary contracts; political economy (search for similar items in EconPapers)
JEL-codes: H29 J23 J38 J41 J64 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2011-12
New Economics Papers: this item is included in nep-lab, nep-lma and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Published - published in: IZA Journal of European Labor Studies, 2012, 1:4

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Related works:
Journal Article: Reforming an insider-outsider labor market: the Spanish experience (2012)
Working Paper: Reforming an Insider-Outsider Labor Market: The Spanish Experience (2012)
Working Paper: Reforming an Insider-Outsider Labor Market: The Spanish Experience (2011)
Working Paper: Reforming an Insider-Outsider Labor Market: The Spanish Experience (2011)
Working Paper: Reforming an Insider-Outsider Labor Market: The Spanish Experience (2011)
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