Evaluating the effects of labour market reforms at the margin on unemployment and employment stability: the Spanish case

This study analyses the effects on unemployment and the quality of employment of the Spanish labour market reform in 2001 for the most important age groups. The content of the reform was based on the implementation of two policies: (i) a new permanent contract with lower firing costs than the ordinary one, and (ii) the reduction of the payroll taxes paid by firms to foster creation/ conversion of/ into permanent contracts. This reform extended to further groups of workers similar measures adopted in a previous reform in 1997. Using a data base of unemployed workers in the region of Madrid from January 1997 up to September 2003, and methods for non-experimental data, the results suggest that, regardless of gender, workers below 30 years are negatively affected by the reform, and workers above 55 years show positive but small effects. The influence of the reform for workers between 45 and 50 years is negligible. As regards education, graduates are more sensitive to the reform than workers with a lower level of education (primary and secondary education)

Diagnosing Market Power in Chile´s Electricity Industry

Chile’s electricity market is modeled as a Cournot duopoly with a competitive fringe. Due to the importance of hydro-storage resources (62% of total generation in 2000) particular care was given to the hydro scheduling issue. The model was estimated over a 1-month planning horizon using real cost and load data for April 2000. I found that the largest producer would be able to get markups that ranged from 66% to 76% (72% in average) when price elasticity was –1/3. In addition hydro resources are inefficiently allocated as production is shifted from high demand periods to low demand periods. Final equilibrium is sensitive to the value of the price elasticity of demand. Four different measures that could be implemented to reduce the potential for market power were analyzed: the divestiture of all or a fraction of Firm 1’s hydro capacity, the divestiture of all of its thermal plants and the role of contracts. Results indicated that since Firm 1 exercises its market power mainly through its hydro resources, the divestiture of the thermal plants would have a negligible effect in the degree of market power that is exercised, although total output and price are closer to the competitive equilibrium. The divestiture of hydro plants, although an effective measure in terms of reducing distortions, would probably be difficult to implement. Requiring producers to sign contracts in advance proved to be successful in reducing incentives to manipulate prices by the firms; in addition, I found that the more contracted is the firm, hydro scheduling is more efficient, meaning that more hydro production is allocated to periods of high demand and less to periods of low demand.

Reaction cross sections for proton scattering from stable and unstable nuclei based on a microscopic approach

Microscopic optical model potential results for reaction cross sections of proton elastic scattering are presented. The applications cover the 10-1000 MeV energy range and consider both stable and unstable nuclei. The study is based on in-medium g-matrix full-folding optical model approach with the appropriate relativistic kinematic corrections needed for the higher energy applications. The effective interactions are based on realistic NN potentials supplemented with a separable non-Hermitian term to allow optimum agreement with current NN phase-shift analyzes, particularly the inelasticities above pion production threshold. The target ground-state densities are obtained from Hartree-Fock-Bogoliubov calculations based on the finite range, density dependent Gogny force. The evaluated reaction cross sections for proton scattering are compared with measurements and their systematics is analyzed. A simple function of the total cross sections in terms of the atomic mass number is observed at high energies. At low energies, however, discrepancies with the available data are observed, being more pronounced in the lighter systems.Comment: 11 pages, 4 figures, submitted to Phys. Rev.

Evaluating the effects of labour market reforms at the margin on unemployment and employment stability: the Spanish case.

This study analyses the effects on unemployment and the quality of employment of the Spanish labour market reform in 2001 for the most important age groups. The content of the reform was based on the implementation of two policies: (i) a new permanent contract with lower firing costs than the ordinary one, and (ii) the reduction of the payroll taxes paid by firms to foster creation/ conversion of/ into permanent contracts. This reform extended to further groups of workers similar measures adopted in a previous reform in 1997. Using a data base of unemployed workers in the region of Madrid from January 1997 up to September 2003, and methods for non-experimental data, the results suggest that, regardless of gender, workers below 30 years are negatively affected by the reform, and workers above 55 years show positive but small effects. The influence of the reform for workers between 45 and 50 years is negligible. As regards education, graduates are more sensitive to the reform than workers with a lower level of education (primary and secondary education).

EVALUATING THE EFFECTS OF LABOUR MARKET REFORMS “AT THE MARGIN” ON UNEMPLOYMENT AND EMPLOYMENT STABILITY: THE SPANISH CASE

This study analyses the effects on unemployment and the quality of employment of the Spanish labour market reform in 2001 for the most important age groups. The content of the reform was based on the implementation of two policies: (i) a new permanent contract with lower firing costs than the ordinary one, and (ii) the reduction of the payroll taxes paid by firms to foster creation/ conversion of/ into permanent contracts. This reform extended to further groups of workers similar measures adopted in a previous reform in 1997. Using a data base of unemployed workers in the region of Madrid from January 1997 up to September 2003, and methods for non-experimental data, the results suggest that, regardless of gender, workers below 30 years are negatively affected by the reform, and workers above 55 years show positive but small effects. The influence of the reform for workers between 45 and 50 years is negligible. As regards education, graduates are more sensitive to the reform than workers with a lower level of education (primary and secondary education).

Default and the maturity structure in sovereign bonds

This paper studies the maturity composition and the term structure of interest rate spreads of government debt in emerging markets. We document that in Argentina, Brazil, Mexico, and Russia, when interest rate spreads rise, debt maturity shortens and the spread on short-term bonds is higher than on long-term bonds. To account for this pattern, we build a dynamic model of international borrowing with endogenous default and multiple maturities of debt. Short-term debt can deliver higher immediate consumption than long-term debt; large longterm loans are not available because the borrower cannot commit to save in the near future towards repayment in the far future.> ; However, issuing long-term debt can insure against the need to roll-over short-term debt at high interest rate spreads. The trade-off between these two benefits is quantitatively important for understanding the maturity composition in emerging markets. When calibrated to data from Brazil, the model matches the dynamics in the maturity of debt issuances and its comovement with the level of spreads across maturities.Bonds ; Debt ; Default (Finance) ; Emerging markets ; International finance