Wage cyclicality: Evidence from Spain using social security data

• Autores: Jorge de la Roca
• Localización: SERIEs : Journal of the Spanish Economic Association, ISSN 1869-4195, Vol. 5, Nº. 2-3, 2014, págs. 173-195
• Idioma: inglés
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• Dialnet Métricas: 4 Citas
• Resumen

  • Using longitudinal social security data, this study finds evidence of weak real wage cyclicality in Spain throughout 1988–2011. The baseline estimate of a 0.4 % increase in wages in response to a one percentage point decline in the unemployment rate lies in the lower bound of available estimates for developed countries. Wage cyclicality in a rigid labour market like Spain is mainly driven by workers under temporary contracts and newly-hired workers. I calculate the cyclicality of the net present value of wages in new matches—the relevant piece of information for firms posting vacancies, but a rarely available measure—and find that it is well approximated by the cyclicality of wages for newly-hired workers.