Drawing Lessons from the Boom of Temporary Jobs in Spain

FEDEA Working Paper No. 2001-12

27 Pages Posted: 14 Oct 2001

See all articles by Juan F. Jimeno

Juan F. Jimeno

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

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)

Carlos García Serrano

Universidad de Alcala de Henares

Multiple version iconThere are 3 versions of this paper

Date Written: July 2, 2001

Abstract

During the last two decades many EU countries have reformed the set of legal rules that regulate dismissals. And, 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, being Spain 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 labor 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, despite recent labor market reforms which have reduced firing costs under the permanent contract and restricted the use of temporary contracts, remains so high.

Keywords: Temporary employment, employment protection legislation

JEL Classification: J65, J68

Suggested Citation

Jimeno, Juan F. and Dolado, Juan Jose and García Serrano, Carlos, Drawing Lessons from the Boom of Temporary Jobs in Spain (July 2, 2001). FEDEA Working Paper No. 2001-12. Available at SSRN: https://ssrn.com/abstract=286714 or http://dx.doi.org/10.2139/ssrn.286714

Juan F. Jimeno (Contact Author)

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

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)

London
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

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)

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