The perfect storm : graduating in a recession in a segmented labor market / Daniel Fernández-Kranz (IE Business School), Núria Rodríguez-Planas (CUNY Queens College and IZA) ; IZA, Institute of Labor Economics
VerfasserFernández-Kranz, Daniel In der Gemeinsamen Normdatei der DNB nachschlagen ; Rodríguez-Planas, Núria In der Gemeinsamen Normdatei der DNB nachschlagen
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenBonn, Germany : IZA Institute of Labor Economics, February 2017
Elektronische Ressource
Umfang1 Online-Ressource (43 Seiten) : Diagramme
SerieDiscussion paper ; no. 10597
URNurn:nbn:de:hbz:5:2-115130 Persistent Identifier (URN)
 Das Dokument ist frei verfügbar.
The perfect storm [1.91 mb]
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This paper analyzes the effects of entry labor-market conditions on workers career in Spain, a country well known for its highly segmented labor market and rigid labor-market institutions. In contrast with more flexible labor markets, we find that the annual earnings losses of individuals without a university degree are greater and more persistent than those of college graduates. For workers without a college degree, the effect is driven by a lower likelihood of employment. For college graduates, the negative impact on earnings is driven by both a higher probability of non-employment, and employment in jobs with fixed-term contracts. While a negative shock increases mobility of college graduates across firms and industries, there is no earnings recovery, just secondary labor-market job churning. Our results are consistent with tight regulations of the Spanish labor market such as binding minimum wages and downward wage rigidity caused by collective bargaining agreements.