A reflection on international labor markets

IE Focus | By Gayle Allard, Professor at IE Business School

We keep hearing about “flexible” and “rigid” labor markets, but what do these terms mean exactly? Does any one model work better than others?

We are hearing a great deal lately about “flexible” and “rigid” labor markets. What exactly does this mean? Is there any particular labor market model that works better than the rest?

Generally speaking a rigid labor market is one in which it is difficult to hire and/or fire workers, because such changes are subject to strict regulations and tend to be extremely expensive exercises. In Spain, up until the labor reform implemented earlier this year, it could take four years for a company to fire a worker who had worked there for many years. These norms seemed to put companies off hiring in general and created a “dual market” where some people were permanent and enjoyed too much protection, while the rest were in a far more precarious position, as well as earning considerably less.  A situation like this tends to reduce a country’s rate of productivity, given that permanent workers have no incentives to be more productive, and temporary employees are unable to produce more because the firm is not willing to invest in training them.

Details

Global MBA / EMBA explained

Sometimes it’s difficult to decide whether to work or to study, especially when your corporate development is smoothly and you don’t really need an additional degree to grow professionally. REALLY? Have you considered what your peers are doing? They might get an MBA Degree meanwhile you’re enjoying working… and to make the next big step…

Details

SURE!

The profesor of  IE School of Architecture, Andy Bäcker is a finalist with a special mention in the 2nd Green ICT Application Challenge, organized by UIT and Telefónica, in support of “International year for Sustainable Energy for All”. The title of Bäcker´s project is “Sure”, it is a transparent, interactive, voluntary and fun certification system to…

Details

IE University experience… just warming up

How is life on a university campus? This very simple but broad question many of our IE University candidates are asking to their families, friends and within their social media networks. In order to provide that “real life experience” as a kind of  teaser or warm-up, IE University invites the admitted candidates to come to…

Details