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Empirical analysis of the relationship between labour cost stickiness and labour reforms in Spain

Author

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  • Josep Mª. Argilés‐Bosch
  • Josep Garcia‐Blandón
  • Diego Ravenda

Abstract

This study performs an empirical analysis on the relationship between labour cost stickiness and the decrease in employment protection in the Spanish labour reforms in 2010 and 2012. Following these reforms, the sticky behaviour of labour costs substantially decreased with respect to the pre‐reform period. All constituents of total labour costs followed a similar pattern: wages, social security contributions and number of employees. Results are robust to different models, estimation methods, periods of time, and industries, as well as with respect to endogeneity concerns.

Suggested Citation

  • Josep Mª. Argilés‐Bosch & Josep Garcia‐Blandón & Diego Ravenda, 2023. "Empirical analysis of the relationship between labour cost stickiness and labour reforms in Spain," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(S1), pages 1187-1221, April.
    • Handle: RePEc:bla:acctfi:v:63:y:2023:i:s1:p:1187-1221
    DOI: 10.1111/acfi.12991
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