The Role of Regulation in the Spanish Productivity Problem (El problema de la productividad en España: cuál es el papel de la regulación?)

Gual, Jordi; Jódar-Rosell, Sandra; Ruiz, Alex

doi:10.2139/ssrn.1019233

Cited by 2 publications

(2 citation statements)

References 15 publications

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“…This is not surprising, as the dismal spanish productivity level constitutes a well documented puzzle. Lowering the risk aversion parameter for the simulation of spanish data would help, but we think other explanations of the low spanish productivity (institutions (Gual, Jodar-Rosell, and Ruiz, 2006), use of temporary labor contracts (Aguirregabiria and Alonso-Borrego, 2009), structure of the work day (Danthine and Lalive, 2009)) are more promising but not in the scope of our model. Workers in our model can only be employed or non-employed, and some may remain unemployed for very long spells (more than 25 periods).…”

Section: Can the Model Explain Cross-country Differences?mentioning

confidence: 99%

Bargaining Frictions, Labor Income Taxation and Economic Performance

Auray

Danthine

2008

SSRN Journal

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This paper is an attempt to explain differences in economic performance between a subset of OECD countries. We classify countries in terms of their degree of rigidity in the labor market, and use a matching model with labor/leisure choice, bargaining frictions, and labor income taxation to capture these rigidity differences. Added flexibility improves economic performance in different ways depending on whether income taxation is high or low. Feeding income taxation rates estimated from the countries at hand, we find that the model is able to replicate the observed rigidity levels. The model is also shown to reproduce well cross-country differences in non-employment population ratios and the share of part-time jobs. In the absence of rigidity differences, taxation shows little promise to replicate cross-country differences, as it has insufficient quantitative effects on production and productivity. However, the interaction of rigidity and income taxation is crucial in explaining the empirical patterns of the non-employment rate and of the share of parttime jobs.

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Section: Can the Model Explain Cross-country Differences?mentioning

confidence: 99%

Bargaining Frictions, Labor Income Taxation and Economic Performance

Auray

Danthine

2008

SSRN Journal

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“…Growth accounting is a very useful method to analyze the sources of economic growth of a country since it obtains an approximation to the contribution of inputs to growth. It decomposes the growth rate in aggregate 1 See, for example, Mas and Quesada (2005), Gual, Jódar andRuiz (2006), andMurgui (2007) for Spain, and O´Mahony and van Ark (2003), Timmer, Ypma and van Ark (2003), Sapir et. al.…”

Section: Introductionmentioning

confidence: 99%

The Sources of Economic Growth in the Basque Country, Navarre and Spain during the period 1986-2004

2008

Orkestra Working Paper Series in Territorial Competitiveness

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The Role of Regulation in the Spanish Productivity Problem (El problema de la productividad en España: cuál es el papel de la regulación?)

Cited by 2 publications

References 15 publications

Bargaining Frictions, Labor Income Taxation and Economic Performance

Bargaining Frictions, Labor Income Taxation and Economic Performance

The Sources of Economic Growth in the Basque Country, Navarre and Spain during the period 1986-2004

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