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...

In much of the literature on economic development, sustained economic growth is expected to be accompanied by several interrelated processes of structure change, which involve a shift in economic activities from "traditional"/agricultural/informal to "modern"/industrial/formal sectors. Such...