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FlexWorkResearch Centre

FlexWorkResearch Centre. 1. Introduction. Study Spanish labour market in a dynamic way Modern Labour Market? • flexible: business strategies, market pressures • safe: individual reorientations, new family situations

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FlexWorkResearch Centre

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  1. FlexWorkResearch Centre 1

  2. Introduction • Study Spanish labour market in a dynamic way • Modern Labour Market? • • flexible: business strategies, market pressures • • safe: individual reorientations, new family situations • Several studies of career paths using the LFS (G. Serrano, Garrido, Toharia) • No analysis from a flexicurity approach in Spain exploiting information of Continous Sample of Working Lives (MCVL) • Flexicurity influential concept in academic and political fields • Answer the research question: • •Could flexicurity be developed as an alternative capable of ending the endemic problems the Spanish labour market faces? Working transitions in the Spanish labour market: a flexicurity approach 2

  3. Concept, problems and justification (1) - Flexicurity: combination of flexibility and security applied to the labour market -Flexibility dimension: • ability to adjust the workload (external) without redundancies (internal) • great adaptability of the workforce (functional) → higher levels of productivity - Security dimension: • high level of social protection • lifelong learning strategies (employability) • active policies (redeployment) Flexicurity : new approach for labour stability Working transitions in the Spanish labour market: a flexicurity approach 3

  4. Geographic scope: Spain. Problems in labour market. • Analysis focuses on period 2005-2010: • • covered by MCVL • • reduction in labour demand and high turnover employment / unemployment • • highly–skilled profesionals, active and open to ongoing job training • Two different trends: • • 2005-2007 final stage of unprecedented expansion of Spanish economy. Decisions. • • 2008-2010 effects of economic crisis on employment. Structural defects. Concept, problems and justification (2) Working transitions in the Spanish labour market: a flexicurity approach 4

  5. Theoretical approaches • Research on labour markets: individual variables as explanatory factors (Human Capital) • Human capital theories: short scope for the study of modern labour markets • Complemented by institutionalists’s theories: • • Segmentation and dualization (Doeringer and Piore, 1983,1985) • • Risk society (Beck, 1992; Giddens, 1993, Esping-Andersen, 1999) • • Transitional Labour Markets (Schmidt, late 90’s) • - TLM: appropriate framework for thesis: it offers a line of solid research to flexicurity approach • TLM as analytical concept and flexicurity as a normative one → the two sides of the same vision: • • social and economic policy based on the long term • • balance of interests for all parties (win-win strategies) • • pay attention in diversity, flexibility and transitions to and from employment Working transitions in the Spanish labour market: a flexicurity approach 5

  6. Methodology (1) - Data source → MCVL: • The only one which lets us know in detail the work histories of Spanish workers • Social Security records: observation of exact beginning and end of work spells • Allows static and dynamic vision of people (registered, pensions, unemployment benefits) • Self-contained series of annual samples • Non-stratified random sampling (4% of the reference population) • Information available in micro-data - Two ways to approach the sample: • Cross-sectional → single wave (short term) • Longitudinal → panel database with some peculiarities (long term) - Advantages over the LFS • It covers a period longer than the LFS, and the previous path (see table 1 and 2) Working transitions in the Spanish labour market: a flexicurity approach

  7. Methodology (2) Table 1. Duration of employment until 2005 Table 2. Duration of unemployment until 2005 Working transitions in the Spanish labour market: a flexicurity approach 7

  8. Methodology (3) • - MCVL other advantages: • • Covers 95 % of the employed in Spain • • It uses 50 different variables (personal data, jobs, employers, work situations…) • • Ensures the selection of the same individuals in successive versions (allows longitudinal studies based on the life course → fundamental in flexicurity analysis) • • Study of small groups, people with discontinuous work stories • MCVL disadvantages: • • High cost of set-up (data cleansing and management) • • Absence of information not required in the database Working transitions in the Spanish labour market: a flexicurity approach 8

  9. Preliminary hypothesis • High percentage of the population has many difficulties in accessing the labour market and transitions are blocked • Access to the labour market as a temporary worker is not an insurmountable obstacle to future achievement of a more permanent one • Improper use of some contractual arrangements that could serve as gateways to a more stable employment Working transitions in the Spanish labour market: a flexicurity approach 9

  10. Results - Results taken from the MCVL 2005-2010 - Selected people in 2005 employment spells of more than 3 months - Bi-annual comparisons (transitions different situations) - Except comparisons from unemployment: started in 2006. - Criterion for selecting the sample ruled out everyone who did not have employment spells in 2005. Not unemployed people. - Total number of spells collected: more than 12 m. - 777,179 people Working transitions in the Spanish labour market: a flexicurity approach

  11. Transition only_employment / only employment - Percentage of workers who have been in the situation only_employment is decreasing on-year. - 2005 to 2006: 90% of workers remained employed throughout the year - 83% between 2008 and 2009 - Re-established to 87% between 2009 and 2010 (job losses had slowed / unemployment rate stabilized) Graph 1. transition only_employment / only employment Working transitions in the Spanish labour market: a flexicurity approach 11

  12. Transition only_unemployment / only unemployment* • - Between 2006 and 2007: 37% of people remained in unemployment category • 52% between 2009 and 2010. • - Figures grow linearly • - More than half only had spells of unemployment in 2009 remained so in 2010 Graph 2. transition only_unemployment / only unemployment * Unemployed: workers who have lost their jobs and are receiving some type of unemployment benefits Working transitions in the Spanish labour market: a flexicurity approach 12

  13. Transition only_unemployment / inactive* • - The transfer between the two-years has also increased considerably • - Between 2006 and 2007: 19% had moved from unemployment to inactivity • - From 2008 to 2009: 26% • 2009-2010 the figure decreased to 16% ("stability" in unemployment /entitlement lost) Graph 3. transition only_unemployment / inactive * Inactive: being employed in 2005 but not included in successive waves in any of the other categories: they have left the labour market, orunemployed but not entitled to contributory benefits Working transitions in the Spanish labour market: a flexicurity approach 13

  14. Transition inactive / inactive • - 85% of the sample population had not left the inactivity between 2006 and 2007 • 94% from 2009 to 2010. • -Part of the population has stopped looking for a job: difficulty of finding one • Part of the population has stopped receiving benefit taxes Graph 4. transition inactive / inactive Working transitions in the Spanish labour market: a flexicurity approach 14

  15. Transition only_unemployment / only employment • - The transfer of quotas among only_unemployment and only_employment is decreasing year by year • 14% between 2006 and 2007 • Only 5% between 2009 and 2010 • Difficulties in finding employment Graph 5. transition only unemployment / only employment Working transitions in the Spanish labour market: a flexicurity approach 15

  16. Employment policies, entry doors and gateways - Entry doors and gateways: - Comparative analysis among three waves (first, intermediate, last) • time one : position the worker had in MCVL-2005 - Three point times • time two : position in 2008 • time three : position in 2010 - Graphs 5 and 6 reflect: • people having temporary contract in 2005 but permanent in 2008 and in 2010 • people having part-time contract in 2005 but full-contract in 2008 and in 2010 Working transitions in the Spanish labour market: a flexicurity approach

  17. Type of contract and transitions • 73% of workers with temporary contracts in the first observation, 2005, had achived • a permanent one at time two, 2008, and remained so in 2010 • -Only 27% of workers on a temporary contract starting continued in the same situation • in 2010 after being permanent in 2008. • A high percentage manage to change from temporary to permanent: temporary • contract could be a goodgateway to a typical job Graph 6. Type of contract Working transitions in the Spanish labour market: a flexicurity approach 17

  18. Working time and transitions • - The working time the workerenters the labour market (if part-time) doesnot determine in a great way their future position • 74% achieved at times two and three a full-time starting with a partial one • Only 26% remained part-time in both observations – 2005 and 2010 - after a full-time work in 2008. • For a not insignificant percentage of workers part-time could be a goodgateway to a typical job Graph 7. Working time Working transitions in the Spanish labour market: a flexicurity approach 18

  19. Discontinuity, instability, and difficulties to make transitions and to complete work career paths. • Change in the Spanish labour market to ensure job transitions and provide dynamism for the job search • Undertake labour market modernization → improving organizational and functional aspects (internal flexibility) - Activation programs could facilitate employability of workers with unstable careers (effective and commitment) •  - Exploiting contractual arrangements could serve as gateways to more stable employment • New Paradigm of Labour Relations in Spain, in the key of flexicurity Discussion Working transitions in the Spanish labour market: a flexicurity approach 19

  20. Further research - Evolution of permanent / temporary workers after labour reforms - Influence of labour market entry age in transitions and trajectories (scarring effects) - Flexicurity by regions (current situation) and activity sectors - Percentage of unemployment covered by benefit taxes - Develop a data matrix with transitions between different work situations Working transitions in the Spanish labour market: a flexicurity approach 20

  21. Thank you very much for your attention. Questions and comments are welcome. Working transitions in the Spanish labour market: a flexicurity approach 21

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