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Spanish Labour Market, Mobility and Labour Shortages

Author

Listed:
  • Carlos Carrillo-Tudela

    (Department of Economics, University of Essex)

  • Alex Clymo

    (Department of Economics, University of Essex)

  • Cristina Lafuente

    (Department of Economics, University of Bath)

  • Ludo Visschers

    (U. Carlos III de Madrid and Edinburgh Futures Institute, University of Edinburgh)

  • David Zentler-Munro

    (Department of Economics, University of Essex)

Abstract

We use a simple yet powerful approach to investigate the dynamics of worker flows across sectors in the Spanish economy. The method imposes a minimal amount of structure on the data by assuming sector-specific matching functions, and backs out the direction of workers' search intensities across sectors using data on realised worker flows and vacancies. We find that aggregate search intensity in Spain has been increasing since the pandemic and has led aggregate labour shortages to be below pre-pandemic levels by 2023. However, this boost of search intensity is directed to industries with low matching efficiencies and job finding rates. As a result, aggregate match formation is near to a 10-years low relative to the number of matches that would result if search intensity was allocated to maximise total matches given the observed vacancy distribution and match efficiencies across sectors.

Suggested Citation

  • Carlos Carrillo-Tudela & Alex Clymo & Cristina Lafuente & Ludo Visschers & David Zentler-Munro, 2025. "Spanish Labour Market, Mobility and Labour Shortages," Edinburgh School of Economics Discussion Paper Series 317, Edinburgh School of Economics, University of Edinburgh.
    • Handle: RePEc:edn:esedps:317
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    File URL: http://www.econ.ed.ac.uk/papers/id317_esedps.pdf
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    More about this item

    Keywords

    Job Search; Industry mobility; Vacancies; Mismatch; Labour Shortages;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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