Scars that Never Heal: Dualisation and Youth Employment Policies in Spain from the Great Recession to the Corona Crisis

Abstract

This article analyses the evolution of the dual labour market in Spain in the post-crisis and provides a first assessment of the labour market impact of the Covid-19 crisis. With the only exception of reducing the distance between the regulation of temporary and permanent contracts, the reforms introduced during the great re-cession and the post-crisis period have not only failed to reduce inequalities in the labour market, but have amplified some of them in interaction with austerity policies. Policies targeting young workers have delivered limited success in improving the position of the most disadvantaged, and more generally, to reduce dualisation as temporary employment remains very high whilst employment conditions of younger groups have deteriorated and become more widespread among those with higher educational attainment.