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Discussion Paper Details

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Title: Reforming an Insider-Outsider Labor Market: The Spanish Experience

Author(s): Samuel Bentolila, Juan J. Dolado and Juan F Jimeno

Publication Date: December 2011

Keyword(s): dualism, Great Recession, labour market reform, political economy and temporary contracts

Programme Area(s): Labour Economics

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.

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Bibliographic Reference

Bentolila, S, Dolado, J and Jimeno, J. 2011. 'Reforming an Insider-Outsider Labor Market: The Spanish Experience'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=8691