Labour Market Dynamics in Spanish Regions PDF Download
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Author: Hector Sala
Publisher:
ISBN:
Category :
Languages : en
Pages : 37
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Book Description
The Spanish labour market disproportionately booms in expansions and bursts in recessions; meanwhile, its regions' relative position persists: those with the highest unemployment rates in 1996 were also in the worse position in 2012. To examine this twofold feature, we apply Blanchard and Katz's (1992) methodology and evaluate how the Spanish labour market reacts to regional employment shocks in a variety of cases. Shock responses are channelled via changes in unemployment, labour market participation, and spatial mobility.Our results provide evidence of asymmetric responses across business cycle phases (1996-2007 and 2008-2012). While changes in participation rates are the main adjustment mechanism in expansion, unemployment and spatial mobility become the central ones in recession. We also provide evidence of real wage rigidities in both periods, but strong asymmetries in house prices, which are sticky in recession but notably reactive in expansion. We conclude with a cluster analysis showing that high and low unemployment regions have similar responses in the short-run while, in the long-run, the former are more reactive in terms of spatial mobility. Overall, we provide evidence that people are more willing to migrate when a regional shock occurs in relatively worse economic contexts.
Author: Hector Sala
Publisher:
ISBN:
Category :
Languages : en
Pages : 37
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Book Description
The Spanish labour market disproportionately booms in expansions and bursts in recessions; meanwhile, its regions' relative position persists: those with the highest unemployment rates in 1996 were also in the worse position in 2012. To examine this twofold feature, we apply Blanchard and Katz's (1992) methodology and evaluate how the Spanish labour market reacts to regional employment shocks in a variety of cases. Shock responses are channelled via changes in unemployment, labour market participation, and spatial mobility.Our results provide evidence of asymmetric responses across business cycle phases (1996-2007 and 2008-2012). While changes in participation rates are the main adjustment mechanism in expansion, unemployment and spatial mobility become the central ones in recession. We also provide evidence of real wage rigidities in both periods, but strong asymmetries in house prices, which are sticky in recession but notably reactive in expansion. We conclude with a cluster analysis showing that high and low unemployment regions have similar responses in the short-run while, in the long-run, the former are more reactive in terms of spatial mobility. Overall, we provide evidence that people are more willing to migrate when a regional shock occurs in relatively worse economic contexts.
Author: Alejandro García-Cintado
Publisher: Springer Science & Business Media
ISBN: 3319036866
Category : Business & Economics
Languages : en
Pages : 71
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Book Description
This work investigates the time series properties of the unemployment rate of the Spanish regions over the period 1976-2011. For that purpose, the authors employ the PANIC procedures of Bai and Ng (2004), which allows to decompose the observed unemployment rate series into common factor and idiosyncratic components. This enables the authors to identify the exact source behind the hysteretic behaviour found in Spanish regional unemployment. Overall, the analysis with three different proxies for the excess of labour supply renders strong support for the hysteresis hypothesis, which appears to be caused by a common stochastic trend driving all the regional unemployment series. In the second part of the analysis the authors try to determine the macroeconomic and institutional factors that are able to explain the time series evolution of the common factor, and in turn help us shed light on the ultimate sources of hysteresis. The reader shall see how the variables that the empirical analysis emphasises as relevant closely fit into the main causes of the Spanish unemployment behaviour. Finally, some policy considerations drawn from the results are presented.
Author: Roberto Bande
Publisher:
ISBN:
Category : Spain
Languages : en
Pages :
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Book Description
"This paper aims to shed light in the dynamics of Spanish regional unemployment rates and determine the driving forces of their disparities. The Spanish economy has one of the highest unemployment rates in the EU and is characterised by severe regional disparities. We apply the chain reaction theory of unemployment according to which the evolution of unemployment is driven by the interplay of lagged adjustment processes and the spillover effects within the labour market system. Our model includes nationwide as well as region-specific variables, and takes into account the limited labour and firm mobility in Spain. We show that the degree of labour market flexibility differs between high and low unemployment regions, and find that investment has a major influence on the unemployment trajectory. In addition, we find that in bad times high unemployment regions are hit more severely than low unemployment regions, while in good times high unemployment regions do not benefit as much as low unemployment regions"--Forschungsinstitut zur Zukunft der Arbeit web site.
Author: Lucy Qian Liu
Publisher: International Monetary Fund
ISBN: 1484387767
Category : Business & Economics
Languages : en
Pages : 30
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Book Description
This paper studies the main factors that explain the low regional mobility in Spain, with a view to identifying policy options at the regional and central level to promote labor mobility. The empirical analysis finds that house prices, labor market conditions, and the pervasiveness of labor market duality at the regional level are the main determinants for Spain’s regional mobility, while labor market institutions and policies play an important role at the national level. Policies that facilitate wage setting flexibility and reduce labor market duality could help enhance the functioning of the labor market, thereby promoting labor mobility. There may be also room for policies to incentivize people to move and provide support through targeted active labor market policies.
Author: Juan Jimeno
Publisher: International Labour Organization
ISBN: 9789221087410
Category : Business & Economics
Languages : en
Pages : 154
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Book Description
Estudio donde se examinan las razones para la gran persistencia e incremento del desempleo en España a partir de los primeros años de la década de los setenta, centrándose particularmente en la flexibilidad como principal razón para la ineficacia del mercado laboral.
Author: Mr. Nicolas Arregui
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 24
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Book Description
This paper uses firm-level data that covers over 1.2 million Spanish firms during the period of 2003-2019 to provide an updated assessment of the drivers of labor productivity in the Spanish economy, focusing on both TFP and firm investment. The empirical analysis shows significant differences in production constraints in both the capital market and the labor market, across firm size and age. This paper also includes a review of Spain’s ambitious reform commitments under the Recovery, Transformation and Resilience Plan and concludes with recommendations for further action.
Author: Roberto Bande
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
On both theoretical and empirical grounds, this paper provides evidence that refutes the natural rate of unemployment (NRU) hypothesis as an explanation of the evolution of regional disparities in the unemployment rate. We first present our analytical framework, which follows the chain reaction theory (CRT) of unemployment and argues that (i) a system of interactive labour market equations, rather than a single-equation unemployment rate model, is better equipped to accommodate unemployment dynamics, and (ii) due to the interplay of frictions and growth in labour markets, the NRU ceases to be an attractor of the unemployment rate time path. We then provide evidence that the Spanish economy is characterised by large and persistent disparities in the regional unemployment rates. Through standard kernel density tecnhiques, we demonstrate the existence of marked differences between two groups of high and low unemployment regions that remain stable in their composition through time. Finally, we review our empirical labour market model for each group of regions and evaluate the corresponding natural rates. Our findings confirm that the evolution of regional disparities cannot be attributed to disparities in the natural rates, given that these, although different, do not act as an attractor of unemployment. Thus, the NRUs offer little help in the formulation of labour market policies. -- Regional unemployment ; Disparities ; Kernel ; Natural rate ; Frictional growth
Author: Celia Melguizo Cháfer
Publisher:
ISBN:
Category :
Languages : en
Pages : 142
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Book Description
This thesis analyses the impact of the recession on the regional labour markets in Spain by considering three different aspects: the regional unemployment sensitivity to economic variations, the minimum wage effect on youth employment rate and finally, the role of the labour market determinants on internal migration. Firstly, we explore the inverse relationship between unemployment and GDP for the Spanish provinces and the period ranging 1985-2013. After testing the time series properties of provincial GDP and unemployment, we specify static and dynamic versions of the Okun's law using VAR and PVAR techniques. Both static and dynamic analyses lead us to determine that provinces show large differences in their unemployment sensitivity to GDP shocks. In particular, provinces that show less diversified industries, a more developed services sector and higher rates of labour participation suffer from higher variations in unemployment rates. In the following analysis we evaluate the effect of minimum wages on regional employment rates, taking especially into consideration its influence on youth employment. The work contributes to the literature by focusing on the analysis of a recessionary period but also by considering spatial effects in order to capture the interactions between regional labour markets. The obtained results have shown a negative but quite small effect of the Kaitz index on the employment rate. The disaggregation of youth population into different age groups has allowed us to identify that the youth group most affected by minimum wages is the one between 20 and 24 years old, which is the most common age group of workers that face the school-to-work transition. Finally, we analyse the main determinants of migration between 45 Spanish Functional Urban Areas during the period of the recent economic downturn, in which factors traditionally related to internal migration such as real wages and employment have greatly declined. In order to perform the analysis, we have resorted to a gravity model for bilateral migration flows where several controls and different complex structures of fixed effects have been included in order to avoid potential endogeneity problems as a consequence of variables omission. Results show that real average wages are relevant migration determinants. They exert a strong influence, especially in foreigners and returned nationals and also, they behave as expected for the working age groups. However, the effect of employment rate on migration flows is less clear. The inconclusive results on the role of employment rate on migration are in line with results obtained in eighties and early nineties highly instability period, when migration phenomenon was labelled as "an enigma".
Author: Alfonso Diez-Minguela
Publisher: Springer
ISBN: 3319961101
Category : Business & Economics
Languages : en
Pages : 302
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Book Description
This book traces regional income inequality in Spain during the transition from a pre-industrial society to a modern economy, using the Spanish case to shed further light on the challenges that emerging economies are facing today. Regional inequality is currently one of the most pressing problems in the European Union, and this text presents a novel dataset covering 150 years to analyse long-run trends in regional per capita GDP. Spatial clustering and a new economic geography approach also contribute to the historical analysis provided, which points to the role played by spatial externalities and their growing relevance over time. To identify the presence of spatial dependence is crucial, not only for getting a better understanding of distribution dynamics, but also for economic policy purposes. What are the potential causes behind the disparities in regional per capita income and productivity? The authors answer this by comparing results with evidence available for other countries, chiefly France, Italy and Portugal, but is of global relevance.
Author: Raquel Fonseca
Publisher: Presses univ. de Louvain
ISBN: 9782930344089
Category : Business & Economics
Languages : en
Pages : 208
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Book Description
Since the mid-1970s Spain has suffered from persistently high unemployment, as it has occurred in other parts of Europe. Although during the last few years the unemployment level has declined, there are still enormous disparities in the unemployment rate across groups, skills and regions. This thesis attempts to shed some light on the mechanisms of unemployment persistence and skill and regional mismatch in Spain. Chapter 1 provides a first introductory analysis of Spanish data. The chapter emphasises the importance of skill and regional mismatch, which may have contributed about fifty percent to the observed increase in total unemployment over the last twenty years. The chapter also studies the cyclical pattern in the Spanish unemployment, which is a very important aspect in view of its magnitude. The following three chapters are devoted to the evaluation of different mechanisms that may have been at work. In all three chapters, the analysis relies on the specification, calibration and simulation of dynamic general equilibrium models with matching on the labour market. Chapter 2 focuses on cyclical fluctuations, with particular emphasis on the role of reallocation shocks. Chapter 3 focuses on « skill mismatch »; more precisely the chapter investigates to what extent unemployment rate disparities across skill groups can be explained in terms of a « ladder effect ». Chapter 4 focuses on regional disparities. A model is built to investigate the possible determinants of regional disparities and the role of labour mobility.
