Published on Monday, November 21, 2016 | Updated on Tuesday, November 22, 2016

Document number 16/17

The effects of wage flexibility on activity and employment in the Spanish economy

Summary

In this paper we estimate the macroeconomic effects of the greater wage and firms’ internal flexibility promoted by various changes in Spanish labour regulations approved since 2012. To do so, we propose a structural VAR that allows us to break down the changes in the main macroeconomic variables into different structural shocks.

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Rafael Doménech BBVA Research - Head of Economic Analysis
Juan Ramón García BBVA Research - Principal Economist

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English - November 21, 2016

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