Description:
Spain has been confronted with weak wage and productivity growth for several decades. This report provides an overview of the role that labour market policies as well as other policies can play in reviving broadly shared productivity growth in Spain. To set the scene, it starts with documenting the decline in broadly shared productivity growth and its underlying mechanisms. It then provides a discussion of how policies can enhance the adaptability of the economy and labour market to structural change. It concludes with a discussion of the role of selected labour market policies for promoting broadly shared productivity gains. The emphasis is on wage-setting institutions, employment protection and job retention support, consistent with the focus of recent reforms.