Reforming an Insider-Outsider Labor Market: The Spanish Experience
47 Pages Posted: 22 Dec 2011
There are 3 versions of this paper
Reforming an Insider-Outsider Labor Market: The Spanish Experience
Reforming an Insider-Outsider Labor Market: The Spanish Experience
Date Written: December 2011
Abstract
This paper presents a case study on reforming a very dysfunctional labour 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 labour market institutions. While the Great Recession and the start of the sovereign debt crisis triggered two labour reforms, the political economy equilibrium has not allowed them to be transformational enough.
Keywords: dualism, Great Recession, labour market reform, political economy, temporary contracts
JEL Classification: H29, J23, J38, J41, J64
Suggested Citation: Suggested Citation