Empirical analysis of the relationship between labour cost stickiness and labour reforms in Spain
This study performs an empirical analysis on the relationship between labour cost stickiness and the decrease in employment protection in the Spanish labour reforms in 2010 and 2012. Following these reforms, the sticky behaviour of labour costs substantially decreased with respect to the pre-reform...
| Authors: | , , |
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| Format: | article |
| Publication Date: | 2023 |
| Country: | España |
| Institution: | Universitat Ramon Llull (URL) |
| Repository: | DAU Arxiu Digital de la Universitat Ramon Llull |
| OAI Identifier: | oai:dau.url.edu:20.500.14342/4727 |
| Online Access: | http://hdl.handle.net/20.500.14342/4727 https://doi.org/10.1111/acfi.12991 |
| Access Level: | Open access |
| Keyword: | Cost stickiness Employment protection legislation Labor cost stickiness Labor reform Spain Treball--Dret i legislació Costos laborals Espanya 331 34 |
| Summary: | This study performs an empirical analysis on the relationship between labour cost stickiness and the decrease in employment protection in the Spanish labour reforms in 2010 and 2012. Following these reforms, the sticky behaviour of labour costs substantially decreased with respect to the pre-reform period. All constituents of total labour costs followed a similar pattern: wages, social security contributions and number of employees. Results are robust to different models, estimation methods, periods of time, and industries, as well as with respect to endogeneity concerns. |
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