Drawing Lessons from the Boom of Temporary Jobs in Spain

36 Pages Posted: 31 Jul 2001

See all articles by Juan Jose Dolado

Juan Jose Dolado

Universidad Carlos III de Madrid - Department of Economics

Carlos García Serrano

Universidad de Alcala de Henares

Juan F. Jimeno

Banco de España - Research Department; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: July 2001

Abstract

During the last two decades many EU countries have reformed the set of legal rules that regulate dismissals. In contrast with other institutional reforms of the labor market, there seems to be a common strategy of maintaining strict employment protection legislation for workers under the typical "full-time"/permanent employment contract, but liberalizing "atypical"/temporary/part-time employment contracts for new entrants in the labor market. As a result, the incidence of temporary employment has noticeably increased across the EU, Spain being the paramount case in this regard. In this Paper we aim at two goals. First, we take stock of the available Spanish evidence regarding the consequences of a dual labour market - in which one-third of employees are under very flexible employment contracts with low severance payments and two-thirds are under permanent employment contracts with very high employment protection - and the lessons which can be drawn for other countries. Secondly, we address the puzzle of why temporary employment in Spain remains so high, despite recent labour market reforms which have reduced firing costs under the permanent contract and restricted the use of temporary contracts.

Keywords: Temporary employment, employment protection legislation

JEL Classification: J65, J68

Suggested Citation

Dolado, Juan Jose and García Serrano, Carlos and Jimeno, Juan F., Drawing Lessons from the Boom of Temporary Jobs in Spain (July 2001). Available at SSRN: https://ssrn.com/abstract=278168

Juan Jose Dolado (Contact Author)

Universidad Carlos III de Madrid - Department of Economics ( email )

HOME PAGE: http://www.eco.uc3m.es/english/staff/

Carlos García Serrano

Universidad de Alcala de Henares ( email )

Plaza de San Diego s/n
E-28801 Madrid
Spain
+34 91 885 4263 (Phone)
+34 91 885 4239 (Fax)

Juan F. Jimeno

Banco de España - Research Department ( email )

Alcala 48
28014 Madrid
Spain

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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