We use a unique dataset to estimate the impact of a large credit supply shock on employment in Spain. We exploit marked differences in banks' health at the onset of the Great Recession. Several weak banks were rescued by the State and they reduced credit more than other banks. We compare...

This paper analyzes the role that global value chains (GVC) have played during the sovereign debt crisis in Europe, and the key policy challenges that Spain faces. First, we provide a comparative analysis of the export performance and FDI activities of Spanish firms, using the firm-level...

La reforma laboral de 2012 acaba de cumplir tres años en febrero. Desde muchos ámbitos se han hecho afirmaciones sobre los efectos de la misma. Según las apreciaciones más optimistas, la reforma explica por qué el mercado laboral español fue capaz de crear más de 400.000 empleos en 2014...

La resistencia a las reformas laborales puede explicarse como un conflicto de intereses entre colectivos de individuos con distintas preferencias sobre la flexibilidad laboral. En este artículo presentamos evidencia empírica sobre cómo varían estas preferencias en función de las...

This paper considers a matching model of heterogenous workers and jobs which includes on-the-job search. High-educated workers transitorily accept unskilled jobs and continue to search for skilled jobs. We study the implications of this model for the unemployment rates of high and low-educated...

This paper considers a matching model with heterogenous jobs (unskilled and skilled) and workers ( low and high- educated) which allows for on-the-job search by mismatched workers. The latter are high-educated workers who transitorily accept unskilled jobs and continue to search for skilled...

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...

Collective bargaining regulation in Spain was put in place at the beginning of the 1980s and, despite successive labour market reforms, its main ingredients are still intact. In this paper we argue that the Spanish regulation of collective bargaining fits neither the current Spanish economic...

Internal migration rates in Spain, in particular interregional ones, are relatively low in comparison with those in other developed countries, in spite of persistent sizeable differences in per capita income and unemployment rates across its regions. In this paper I describe the evolution of...

Over the last quarter century, the Spanish unemployment rate has gone from 3.5% to 24% of the labor force, and then back to 13%. In this paper we describe this extraordinary evolution more in detail, discuss the main shocks and institutions behind it, and provide a set of policy implications...