REFORMA LABORAL 2010: UNA PRIMERA EVALUACIÓN Y PROPUESTAS DE MEJORA

The aim of this paper is twofold. Firstly, we try to assess the impact of the labour market reform in Spain. Twelve months after its approval, this reform, the sixth in the last 27 years, is not succeeding in reducing one of the greatest problems of the Spanish labour market, namely, the huge turnov...

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Bibliographic Details
Published in:Revista de economía aplicada 2011-12, Vol.19 (57), p.147
Main Authors: Conde-Ruiz, J Ignacio, Felgueroso, Florentino, García-Pérez, J Ignacio
Format: Article
Language:eng ; spa
Subjects:
Employee turnover
Employment contracts
Labor market
Studies
Online Access:Get full text
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Summary:The aim of this paper is twofold. Firstly, we try to assess the impact of the labour market reform in Spain. Twelve months after its approval, this reform, the sixth in the last 27 years, is not succeeding in reducing one of the greatest problems of the Spanish labour market, namely, the huge turnover of workers due to an excessive use of fixed-term contracts. Secondly, we compare the potential long-term effects of this reform to the alternative of introducing a single contract with severance payments that increase with seniority. We present a simulation exercise to assess the effects of these two systems on predicted mean severance costs and employment duration. Our main result is that, although producing similar aggregate firing costs, the single contract results in a substantial increase in average employment duration. [PUBLICATION ABSTRACT]
ISSN:2632-7627