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The Effects of Wage Flexibility on Activity and Employment in the Spanish Economy

Publicada el lunes, 3 octubre 2016 | Actualizada el lunes, 3 octubre 2016

The Effects of Wage Flexibility on Activity and Employment in the Spanish Economy

We estimate the macroeconomic effects of the greater wage and firms' internal flexibility promoted by various changes in Spanish labour regulations approved since 2012 and by the Second Agreement on Employment and Collective Bargaining. We propose a structural VAR that allows us to decompose the changes in the main macroeconomic variables into different structural shocks.

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