Working Paper: CEPR ID: DP15452
Authors: Juan J. Dolado; Florentino Felgueroso; Juan Jimeno
Abstract: This paper reviews the experience so far of the Spanish labour market during the Covid‐19 crisis in the light of current institutions, past performance during recessions, and the policy measures adopted during the pandemic. Emphasis is placed on the role of worldwide trends in labour markets (automation and AI) in shaping a potential recovery from this (hopefully) transitory shock through a big reallocation process of employment and economic activity.
Keywords: epidemic; covid19; dual labour markets; flows; recessions
JEL Codes: J64; J68
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| COVID-19 pandemic (H12) | decline in employment in Spain (F66) |
| COVID-19 pandemic (H12) | job losses concentrated among temporary workers (J63) |
| COVID-19 pandemic (H12) | increase in unemployment and inactivity (J68) |
| short-time work (STW) schemes (J65) | mitigate job losses (J65) |
| COVID-19 pandemic (H12) | transitions from employment to nonemployment (J63) |
| COVID-19 pandemic (H12) | structural shift in the labour market (J29) |
| COVID-19 pandemic (H12) | reallocation of jobs towards sectors aligned with megatrends (J62) |
| COVID-19 pandemic (H12) | increased long-term unemployment rates (J64) |
| COVID-19 pandemic (H12) | reconfiguration of labour market institutions (J48) |