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| Juan A. Sanchis-llopis and Antonio Cutanda |
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| ''The Spanish cyclicality of the user cost of labour'' |
| ( 2020, Vol. 40 No.3 ) |
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| This paper contributes to the study of the Spanish unemployment puzzle: while unemployment and temporary employment rates are among the highest in the E.U., productivity is very low and wages show a rigidity similar to other European countries. We estimate the sensitivity of the user cost of labour (and wages) to aggregate unemployment (i.e., cyclicality), using a pseudo-panel built by combining two Spanish microeconomic surveys (the Labour Force Survey and the Family Expenditure and Income Survey) for the period 1987-1997. We find that the user cost of labour is more procyclical than average wages, what provides evidence of wage rigidity.
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| Keywords: Cyclicality, user cost of labour, pseudo-panel data |
JEL: J3 - Wages, Compensation, and Labor Costs: General
E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data) |
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| Manuscript Received : Jan 21 2020 | | Manuscript Accepted : Jul 14 2020 |
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