In the early 1970s, hours worked per working-age person in Spain were higher than in the United States. Starting in … 1975, however, hours worked in Spain fell by 40 percent. We find that 80 percent of the decline in hours worked can be … decrease in hours in 1975–1986 and the large increase in hours in 1994–2007. The lack of productivity growth in Spain during …

-skilled workers. Using firm level microdata from the manufacturing sector in Spain, we construct a plausibly exogenous measure of …-skilled employment in Spain. These findings are consistent with a heterogeneous firms model where reduction in trade costs augments the …