This report provides an initial evaluation of the comprehensive reform of the Spanish labour market undertaken in 2012. The report was commissioned to the OECD by the Spanish government and it complements the evaluation of the 2012 labour market reform undertaken by the Labour Ministry (Ministerio de Empleo y Seguridad Social (MEySS)) and presented in September 2013.
The evaluation presented in this report should be considered preliminary and mainly confined to the short-time impact of the reform, given the fact that only a short amount of time has passed since the reform was undertaken and the complexity of assessing the impact of such a comprehensive reform.
The objective of this report is to describe the key components of the 2012 reform and place them in the context of the evolution of labour market institutions in other OECD member countries, with a particular focus on collective bargaining and employment protection legislation. The report also assesses the impact of the reform on the ability of firms to adjust wages and working time to cope with demand shocks (so-called internal flexibility), as well as the flows in the labour market for different types of contracts and the overall duality of the Spanish labour market. The report also considers what complementary reforms would be required to improve the effectiveness of the labour market reform, in particular in the area of active labour market policies.