Unemployment and labour market flexibility : Spain

Abstract

This study examines the causes of high unemployment in the Spanish economy since the mid-1970s, and the employment policies used to tackle it. Lack of flexibility was often blamed for the labour market's inefficiency, and policies aimed at promoting and liberalizing fixed-term rather than permanent full-time employment led to the employment recovery of the late 1980s. The authors argue, however, that other labour market features are more relevant.

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