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The purpose of this paper is to analyse the wage gap between temporary and permanent workers across the whole wage distribution, not just at the mean, and the evolution before and after the Great Recession on this gap in Spain.

An extended Mincer-type wage equation is estimated using ordinary least square regression and unconditional quantile regression. Then, the decomposition of the wage gap between workers with fixed-term and permanent contracts for each quantile is made using the Fortin, Lemieux and Firpo decomposition.

The results show that two workers, with identical characteristics, earn different salaries if they have a different type of contract. However, the wage gap is not constant across the wage distribution. The penalty for temporary workers is wider for higher wages. Moreover, the main part of the gap is due to observed characteristics, but other factors (unobserved characteristics and discrimination) become more relevant in the upper part of the wage distribution.

The study expands upon available studies for Spain in two points. First, it is the first paper to the knowledge that analyse both the wage gap between temporary and permanent workers across the wage distribution and its decomposition. Second, the paper explores what happened before and after the Great Recession. In the years that the paper analyses there is also a labour market reform.

The authors explore the effect of the recent unemployment shock in Spain on people’s beliefs about the role of effort as a determinant of economic position. They use a series of Spanish public opinion surveys between 2010 and 2018, matched with regional-level unemployment data and find that people attribute a larger role to luck in provinces where the unemployment rate increased more during the economic recession. This finding persists after controlling for a series of demographic, socio-economic and ideological individual-level variables. In addition, the authors find that lower educated individuals, and those who position themselves as more left-wing have adjusted their beliefs more, while individuals who identify as conservative have adjusted their beliefs less.

Despite the widely recognised importance of lifelong learning, there are mixed results on its causal economic impact. The purpose of this paper is to investigate how economic conditions change the composition of participants in non-formal lifelong learning and whether the business cycle is relevant for the impact of non-formal lifelong learning on employability.

Non-linear decomposition techniques and matching estimators based on multidimensional covariates are applied to the Spanish sample of the European Adult Education Survey. The analysis controls for background, human capital and personal traits and draws a distinction between unemployed and employed workers.

The results show major differences in the volume and composition of participants before and during the Great Recession. In addition, there is a business cycle dependence of the effectiveness of non-formal lifelong learning that varies with the individual labour market situation. While lifelong learning proves more effective for the unemployed in recessions, for the employed the impact is greater in expansions.

The paper provides new evidence on the scant results of the moderating effect of the business cycle on the impact of lifelong learning. The analysis is not restricted to training implemented within public programmes, but rather extends to any kind of non-formal lifelong learning undertaken by unemployed and employed workers. In this sense, the analysis provides information about the optimal moment to invest in lifelong learning from both the policymaker and individual as well as firm perspective.

Labor force transitions are empirically examined using Current Population Survey (CPS) data matched across months from 1996 to 2012 for Hispanics, African-Americans, and whites. Transition probabilities are contrasted prior to the Great Recession and afterward. Estimates indicate that minorities are more likely to be fired as business cycle conditions worsen. Estimates also show that minorities are usually more likely to be hired when business cycle conditions are weak. During the Great Recession, the odds of losing a job increased for minorities although cyclical sensitivity of the transition declined. Odds of becoming re-employed declined dramatically for blacks, by 2–4%, while the probability was unchanged for Hispanics.

The economic literature starting with Borjas (2001) suggests that immigrants are more flexible than natives in responding to changing sectoral, occupational and spatial shortages in the labor market. The purpose of this paper is to study the relative responsiveness to labor shortages by immigrants from various origins, skills and tenure in the country vis-à-vis the natives, and how it varied over the business cycle during the Great Recession.

Using data primarily from the EU Labor Force Survey and the EU Statistics on Income and Living Conditions, the authors calculate a wage-based measure of labor shortages in the first stage while in the second stage the authors use them in a first-differences fixed-effects model as a regressor to explain changes in immigrants’ distribution across sectors, occupations and countries vis-à-vis the natives.

The authors show that immigrants have responded to changing labor shortages across EU member states, occupations and sectors at least as much and in many cases more flexibly than natives. This effect is especially significant for low-skilled immigrants from the new member states or with the medium number of years since migration, as well as with high-skilled immigrants with relatively few (one to five) or many (11+) years since migration. The relative responsiveness of some immigrant groups declined during the crisis years (those from Europe outside the EU or with 11 or more years since migration), whereas other groups of immigrants became particularly fluid during the Great Recession, such as those from new member states.

The results suggest that immigrants may play an important role in labor adjustment during times of asymmetric economic shocks, and support the case for well-designed immigration policy and free movement of workers within the EU. Some limitations include alternative interpretations of the wage premium as our measure of shortage, as well as possible endogeneity of this measure in the model.

The results provide new insights into the functioning of the European Single Market and the roles various immigrant groups play for its stabilization through labor adjustment during the times of uneven economic development across sectors, occupations and countries.

The purpose of this paper is to analyse the association between drug consumption and unemployment. This paper also studies the differential association between these variables in both the pre- and current-crisis periods. The results are compared in an attempt to verify that the population of users is more vulnerable in terms of how likely they are to get and hold down a job in the labour market.

Matching methods and microdata from the Survey on Alcohol and Drugs in Spain, EDADES are used. The use of these methods on the estimates carried out prove to be particularly effective in reducing treatment-selection bias. The authors’ interest is also to analyse the differential association between the interest variables in both the pre- and current-crisis periods. For this purpose, the authors also use the differences-in-differences (DID) estimation method between the two periods to check if the impact of drug use on unemployment depends on the economic context. The estimations are compared in an attempt to verify that the population of users is less likely to attain and hold down a job in the labour market than non-drug users.

The results obtained in the current study are consistent with the hypothesis that drug use decreases an individual’s capacity and availability when he or she is trying to enter the labour market. In both 2007 and 2013, drug users were more likely to be unemployed, regardless of the type of drug. Differences in the probability of being unemployed intensify during an economic crisis. In light of these results, it is possible to conclude that the negative effect of drug consumption on an individual’s employability is increased during periods of economic recession.

The study presented here has some limitations. Firstly, cross-sectional data were used to examine the causal relationship between consumption and employment. In this sense, the results are susceptible to bias. The unavailability of longitudinal data on the same individual made it impossible for the researchers to consider periods of abstinence, the duration of periods of consumption and how this consumption affected an individual’s productivity and his or her working situation. Another limitation is that certain relevant unemployment variables may have been omitted. Among the variables that affect an individual’s labour participation is the existence of sources of income as an alternative to market salaries. With state subsidies, income from illegal activities and money sent by family or friends, an individual may decide not to work. This problem could be mitigated if omitted variables operate in a similar way throughout both of the periods examined.

Given the results obtained in this paper, the authors believe that public policy conclusions should be mainly concerned with the importance of implementing proactive employment policies, along with family support programmes and a greater role for primary care among the people with the highest risks of exclusion. Health treatment should go jointly with measures that make it easier for individuals to enter the workforce. These steps would only be possible with an improved level of education and more complete professional profiles, to increase motivation when individuals seek employment.

This study could make various contributions to the existing body of evidence. In the authors’ knowledge, this is the first attempt to document the effect of the economic crisis on the employability of the drug-using population in contrast with the general population. Moreover, a methodology is presented that provides an alternative to those used in earlier studies, in terms of reducing treatment-selection bias. At the same time, the use of a DID estimation method between pre- and current-crisis periods allow us to check if the impact of drugs consumption on unemployment depends on the economic context.

This work analyzes the economic impact of an economic crisis on consumption in Spanish households, detecting inequalities in household consumption according to the age of the main breadwinner and changes in consumption patterns. In particular, the effects of the financial crisis of 2008 on household consumption are studied and divided according to the main breadwinner's age group to obtain the economic impact of the fall in consumption in young households.

The input–output tables of the Spanish economy during the years 2005 and 2015 and data on household consumption based on age group have been used. Economic impact is estimated through multisector modeling, specifically a demand model expressed in monetary terms. This model allows us to obtain the direct impact on the sectors offering the demanded services and the indirect impact due to increase in intermediate demand from these sectors on the rest of them.

The results obtained show the changes in household consumption and its effects on different productive sectors, highlighting the following sectors: real estate activities, electricity, gas, steam and air conditioning supply, accommodation and food service activities and manufacturing.

This study measures the impact of an economic crisis on the consumption of young households, analyzing all groups of households according to the main breadwinner's age, with the added value of studying the impact of this variation on household consumption and quantifying the positive and negative impact on the different sectors of activity of the Spanish economy.

This paper aims to weigh the restrictions to job creation imposed by labor market imperfections with respect to financial market imperfections. The authors want to see which restriction is more severe, and thus assess which is more powerful in creating permanent employment if it were removed.

A structural estimation is performed. The policy rules of the dynamic programming model are integrated into a simulated maximum likelihood procedure by which the model parameters are recovered. Data come from the CBBE (Balance Sheet data from the Bank of Spain). Identification of key parameters comes mainly from the observation of debt variation and sluggish adjustment to permanent labor.

Long-run permanent employment increases up to 69% when financial constraints are removed, whereas permanent employment only increases up to 54% when employment protection or firing costs are eliminated. The main finding of this paper is that the long-run expansion of permanent employment is larger when financial imperfections are removed than when firing costs are removed, even when there are important wage increases that moderate these employment expansions.

The removal of firing costs has been suggested by several economists as a result of the analysis of labor market imperfections. These policies, however, face the strong opposition of labor unions. This paper shows that the goals of permanent job creation can be accomplished without removing employment protection but by means of enhancing financial access to firms.

The connection between financial constraints and employment has been studied in recent years, motivated by the Great Recession. However, there is no assessment of how financial and labor market imperfections compare with each other to restrict permanent job creation. This comparison is crucial for policy analysis. This study is an attempt to fill out this gap in the economic literature. No previous research has attempted to perform this very important comparison.

During the Great Recession, the increase in Greece's unemployment rate was the highest in the European Union (EU). However, there exists no multi-variate study which has assessed the association between parental unemployment and adolescents' grades. The present study aimed to examine whether parental unemployment is associated with deterioration in adolescents' grades during periods of economic decline.

The study utilised panel data from the same upper high schools in the periods 2011–2013 and 2017–2019 to assess whether the grades of adolescents were associated with parental unemployment. A variety of empirical specifications and robustness tests were employed to offer better informed evaluations.

The exogeneity of parental unemployment with respect to adolescents' grade was confirmed. The analysis revealed that parental unemployment was associated with a decline in adolescents' grades. Periods of economic decline, i.e. in 2011–2013, were found to be associated with deterioration in adolescents' grades. Moreover, during periods of economic decline, parental unemployment was associated with deterioration in adolescents' grades. Furthermore, parental unemployment was associated with lower adolescents' grades for those households that were not homeowners and whose schools were located in working-class areas. The outcomes were found to be robust, even after including information for government expenditure on education and social protection.

This is the first Greek study, and amongst the first international studies, to evaluate whether parental unemployment can lead to a deterioration in adolescents' grades during an economic decline. The potential long-lasting effects of parental unemployment on children's human capital should be considered by policymakers, as should educational interventions to support households experiencing adverse economic conditions.

The European Union (EU) and its European neighbourhood are mutually dependent. In the next decades, the EU will need to import foreign labour in response to different challenges. The geographical proximity, economic, cultural and historical links with EU Neighbouring countries make them an important potential source of labour force and, moreover, they are the main countries of origin and transit of legal and illegal migration towards Europe. The purpose of this paper is to analyse the impact of different EU policies on future migration flows, and to evaluate the current effect of immigration from neighbouring countries on EU labour markets.

The papers in this Special Issue combine different macro and micro approaches, and have been produced in the context of the seventhth Framework Programme EU-funded SEARCH project. The main objective of this project is to strengthen the integration process by analysing current and future trends in several areas covering trade, migration or institutional reforms among others. The first three papers focus on the analysis of the determinants of migration flows, the next four are related to immigrants’ integration and the last one explores the trade-migration link.

The evidence gathered in this Special Issue is of interest to academics and policy makers. For instance, at the aggregate level there is a need to coordinate EU migration policies with reforms in other areas such as labour market institutions or welfare systems, but also to take into account developments in immigrants’ countries of origin. Policy should focus on assessing the skills levels of immigrants and providing assistance in transferring their skills, but also on providing better information of the current needs in the EU labour markets.

The Special Issue adds to the literature on the determinants of migration and on the integration of immigrants into EU labour markets. These papers contribute to a better understanding of the complex link between the EU and the Neighbouring countries. They also leave open many questions that should clearly stimulate future research.