Reforming an Insider-Outsider Labor MarketThe Spanish Experience

  1. Samuel Bentolila 1
  2. Juan J. Dolado 2
  3. Juan F. Jimeno 3
  1. 1 CEMFI
  2. 2 Universidad Carlos III de Madrid
    info

    Universidad Carlos III de Madrid

    Madrid, España

    ROR https://ror.org/03ths8210

  3. 3 Banco de España
    info

    Banco de España

    Madrid, España

    ROR https://ror.org/02f26yq04

Revista:
Documentos de Trabajo ( CEMFI )

Año de publicación: 2011

Número: 6

Tipo: Documento de Trabajo

Resumen

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 notallowed them to be transformational enough.