Abstract

http://ssrn.com/abstract=1973915
 
 

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Reforming an Insider-Outsider Labor Market: The Spanish Experience


Samuel Bentolila


Centro de Estudios Monetarios y Financieros (CEMFI); Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute)

Juan Jose Dolado


Universidad Carlos III de Madrid - Department of Economics; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute)

Juan Francisco Jimeno-Serrano


Foundation for Applied Economic Research (FEDEA); Universidad de Alcala; Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)


IZA Discussion Paper No. 6186

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.

Number of Pages in PDF File: 46

Keywords: temporary contracts, dualism, labor market reform, political economy, Great Recession

JEL Classification: H29, J23, J38, J41, J64

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Date posted: December 17, 2011  

Suggested Citation

Bentolila, Samuel and Dolado, Juan Jose and Jimeno-Serrano, Juan Francisco, Reforming an Insider-Outsider Labor Market: The Spanish Experience. IZA Discussion Paper No. 6186. Available at SSRN: http://ssrn.com/abstract=1973915

Contact Information

Samuel Bentolila (Contact Author)
Centro de Estudios Monetarios y Financieros (CEMFI) ( email )
Casado del Alisal 5
28014 Madrid
Spain
+34 91 429 0551 (Phone)
+34 91 429 1056 (Fax)
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
Juan Jose Dolado
Universidad Carlos III de Madrid - Department of Economics ( email )
Calle Madrid 126
Getafe, 28903
Spain
+34 91 624 9300 (Phone)
+34 91 624 9313 (Fax)
HOME PAGE: http://www.eco.uc3m.es/english/staff/
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
Juan Francisco Jimeno-Serrano
Foundation for Applied Economic Research (FEDEA) ( email )
Jorge Juan 46
Madrid, 28001
Spain
+34 91 435 0401 (Phone)
+39 91 577 9575 (Fax)
Universidad de Alcala
Plaza de San Diego s/n
Alcala de Henares
E-28801 Madrid
Spain
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
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