The reform of the Spanish labour market is politically costly, and will only bring minor economic changes

The Spanish labour market is infamously rigid. In response to Spain’s economic crisis, the recently elected right-wing Popular Party, has undertaken major labour market reforms. Vicente Cuñat argues that the government’s attempts at reform are a missed opportunity because they will fail to resolve Spain’s job market duality of temporary and permanent contracts and they will not reduce the red tape associated with employment law.