Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161220
Authors: 
Fernández-Kranz, Daniel
Rodríguez-Planas, Núria
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers 10597
Abstract: 
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.
Subjects: 
wage rigidity
full and dynamic effect of poor labor market conditions at entry
fixed-term and permanent contract
JEL: 
E32
J22
J31
Document Type: 
Working Paper

Files in This Item:
File
Size
1.96 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.