Reforming an Insider-Outsider Labor MarketThe Spanish Experience
- Samuel Bentolila 1
- Juan J. Dolado 2
- Juan F. Jimeno 3
- 1 CEMFI
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2
Universidad Carlos III de Madrid
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3
Banco de España
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Datum der Publikation: 2011
Nummer: 6
Art: Arbeitsdokument
Zusammenfassung
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.