Empirical analysis of the relationship between labour cost stickiness and labour reforms in Spain

This study performs an empirical analysis on the relationship between labour cost stickiness and decrease in employment protection Spanish reforms 2010 2012. Following these reforms, sticky behaviour of costs substantially decreased with respect to pre-reform period. All constituents total followed a similar pattern: wages, social security contributions number employees. Results are robust different models, estimation methods, periods time, industries, as well endogeneity concerns.