More alike than different: the Spanish and Irish labour markets before and after the crisis

Artikel

Spain and Ireland might seem at first to feature very different labour markets, which go from very tight to very flexible labour conditions. Our analysis, however, goes beyond this simplistic argument and brings to light some important similarities. For this purpose, we estimate a dynamic multi-equation structural model for each country and offer two sets of dynamic simulations that account for the swings of the unemployment rates before and after the 2007 crisis. Our results suggest looking beyond the degree of flexibility in both labour markets and focusing instead on other variables usually neglected by more conventional approaches. In particular, such variables as the growth of capital stock, the growth of labour productivity, and demographics, succeed in explaining a great part of the changes in unemployment in both countries.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: IZA Journal of European Labor Studies ; ISSN: 2193-9012 ; Volume: 1 ; Year: 2012 ; Pages: 1-24 ; Heidelberg: Springer

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Labor Force and Employment, Size, and Structure ; Investment; Capital; Intangible Capital; Capacity ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
• Subject: unemployment dynamics ; structural multi-equation models ; chain reaction theory ; simulations ; PIGS

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Agnese, Pablo ; Salvador, Pablo F.
• Event: Veröffentlichung
• (who): Springer
• (where): Heidelberg
• (when): 2012

Further information

• DOI: doi:10.1186/2193-9012-1-9
• Handle: http://hdl.handle.net/10419/92317
• Last update: 10.03.2025, 11:42 AM CET