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Brown Bag Seminar | From bricklayers to waiters: labor market adjustment of Spanish workers during The Great Recession with Henry Redondo (ENTER)

This paper analyzes the impact on worker’s employment and earnings trajectories caused by the employment contraction of the Spanish construction sector during the Great Recession. Moreover, it quantifies the relevance of the interaction between worker skills and local sectoral composition on the worker’s labour market adjustment during the same period. This is an online seminar which will take place via Zoom.

Welcome to Brown Bag Seminar in Economics organised by the Department of Economics, SSE. The seminar speaker is Henry Redondo, presenting "From bricklayers to waiters: labor market adjustment of Spanish workers during The Great Recession"

Abstract

This paper analyzes the impact on worker’s employment and earnings trajectories caused by the employment contraction of the Spanish construction sector during the Great Recession. Moreover, it quantifies the relevance of the interaction between worker skills and local sectoral composition on the worker’s labour market adjustment during the same period. The identification strategy exploits variation in the construction sector’s employment contraction across Spanish provinces and a rich set of worker characteristics available in administrative panel data (CSWL). I show that individuals initially employed in the construction sector experienced a large impact on their cumulative wages during Spain’s economic downturn. This impact resulted from longer unemployment and non-employment spells rather than a decrease in the average wages of exposed workers. Supported on the previous results, I study to what extent the local sectoral composition contributes to alleviating the shock’s impact on worker’s outcomes. The results suggest that earnings losses are larger for workers in provinces where the sectoral composition provides fewer opportunities to change sectors. Furthermore, the reallocation probabilities depend on the interaction of worker and regional characteristics. One implication of these findings is that high sectoral concentrations in a region may harm worker’s outcomes in case of a sectoral shock. Finally, these findings support that short term labour market adjustments are mainly intersectoral rather than inter-regional, consistent with recent empirical evidence in other settings.

Henry Redondo is a Ph.D. student in economics at Universidad Carlos III Madrid. Henry works on topics related to wage inequality, and labor economics. He uses Spanish administrative data in order to understand the evolution of wage inequality explained by the frictions to the labor market adjustment of workers affected by economic shocks. 

This is an online seminar which will take place via Zoom. The link to the seminar will be distrubted by invitation only. Please contact lyudmila.vafaeva@hhs.se if you would like to attend the seminar.

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The EUROPEAN NETWORK FOR TRAINING IN ECONOMIC RESEARCH (ENTER) is a cooperative venture between eight leading European Economics Departments, located in Barcelona (Spain), Brussels (Belgium), London (United Kingdom), Madrid (Spain), Mannheim (Germany), Stockholm (Sweden), Tilburg (the Netherlands) and Toulouse (France).

ENTER exchange seminars offer students the possibility to visit universities in the network to present papers and interact with students and faculty members in the other institutions.

Dept. of Economics Economics Lunch seminar

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