2012 Labour Market Reform in Spain A Preliminary Assessment

This report provides an initial evaluation of the comprehensive reform of the Spanish labour market undertaken in 2012. It describes the key components of the 2012 reform and places them in the context of the evolution of labour market institutions in other OECD member countries, with a particular focus on collective bargaining and employment protection legislation. The report also assesses the impact of the reform on the ability of firms to adjust wages and working time to cope with demand shocks, as well as the flows in the labour market for different types of contracts and the overall duality of the Spanish labour market. It also considers what complementary reforms would be required to improve the effectiveness of the labour market reform, in particular in the area of active labour market policies.