Explaining Unemployment in Spain: Structural Change, Cyclical Fluctuations, and Labor Market Rigidities

Abstract

This is a Working Paper and the author would welcome any comments on the present text. Citations should refer to a Working Paper of the International Monetary Fund, mentioning the author, and the date of issuance. The views expressed are those of the author and do not necessarily represent those of the Fund.

How Bad Is Unemployment in Tunisia? Assessing Labor Market Efficiency in a Developing Country

“…For instance, it has been argued that Japan's unemployment rate, which is the lowest among industrial countries, is biased downward because some individuals who are not working are counted as employed, while they would be considered unemployed elsewhere (Hashimoto 1993). Similarly, Spain's unemployment rate, the highest in the industrial world, is said to be overestimated because many employed workers are not registered with the social security system (for conflicting views on the magnitude of this bias, see Franks 1994 andJimeno 1995).…”