- "Spain currently has the highest employment rate in the European Union and among OECD countries. The characteristics of the labor market, heavily focused in terms of collective and dual bargaining (highest level of temporary contracts in the eurozone) largely explain such a violent deterioration. In the absence of any agreement between management and labor (after some two years of discussions), the government has finally decided to take its own measures to make the labor market more flexible. Adopted by decree, these measures will subsequently be submitted to Parliament during the summer."
- "The reform’s major advances are its relaxation of derogations to company agreements and reduction in redundancy costs. Lastly, the reform takes one important step with its creation of an individual capitalization fund, based on the Austrian model."
- "After reviewing the position of Spain’s labor market, we present the main measures of the reform and end by providing a brief qualitative assessment of their effects."
- "We thus consider that while this reform was necessary and overdue, the main problem of Spain’s labor market is as much due to its lack of flexibility (traditional unemployment) as its underemployment of factors (Keynesian unemployment), hence economic growth."
Natixis Flash Economics 331 20100628
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