DP1398 Gross Worker Flows: How Does the Spanish Evidence Fit the Stylized Facts?

Author(s): Pablo Antolin
Publication Date: May 1996
Keyword(s): Unemployment and Employment Dynamics
JEL(s): J64
Programme Areas: Human Resources
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=1398

This paper examines gross worker flows in Spain. Unemployment inflows are counter-cyclical while outflows are a-cyclical. Changes introduced in the Spanish labour market have increased the magnitude and variability of both flows, in particular inflows, without affecting the a-cyclical behaviour of outflows. Engagements and flows into employment from non-employment are pro-cyclical. Separations are a-cyclical, while flows out of employment to non-employment are counter-cyclical. Hence job-to-job movements must be pro-cyclical. Engagements and separations have responded positively to a wider variety of contractual forms. The Spanish evidence seems to be reasonably explained by the existence of a dual labour market between workers under permanent and fixed-term job contracts.