So different yet so alike: Micro and macro labour market outcomes in Germany and Spain

Maia Güell, Cristina Lafuente, Manuel Sánchez, Hélène Turon*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

It is well-known that German and Spanish labour markets are quite different from a macro point of view. In this paper, we look at these markets through the lenses of individual unstable spells. These include all forms of atypical employment (such as temporary contracts and mini-jobs) as well as unemployment. This combined unstable state captures a fuller picture of the individual experience of volatile income and uncertain employment status than unemployment alone. We find that the survival rates of unstable spells in the two countries are much more similar than those from unemployment. This suggests that the usual focus on unemployment stocks and durations exaggerate the contrast between the two countries in terms of workers’ experience of instability. We place these findings in the context of very similar aggregate shocks in the two countries and different policy choices on labour market reforms.
Original languageEnglish
Number of pages23
JournalSERIEs
Early online date23 Nov 2021
DOIs
Publication statusE-pub ahead of print - 23 Nov 2021

Keywords

  • administrative social security data
  • unstable spells
  • duration
  • atypical employment
  • temporary contracts
  • mini-jobs

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