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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...
Persistent link: https://www.econbiz.de/10013117400
shock leads to larger wage increases for high-skilled workers than for low-skilled workers, due to the smaller matching … frictions of the former (SAM-asymmetry channel). Moreover, the increase in capital demand amplifies this wage divergence due to …
Persistent link: https://www.econbiz.de/10012919514