Analysis of the permanence in employment of Spanish workers during the period 2007–2010

This paper presents an analysis of the permanence in employment of Spanish workers from 2007 to 2010. This period covers the end of the expansion of the Spanish economy and the beginning of the employment crisis. The probability of staying in the same spell of employment and the variables that explain this duration are studied. To achieve our objectives, we use the Kaplan-Meier method, which provides both the risk rate and survival function. Additionally, we estimate a Cox model, which considers the time dimension and individual heterogeneity to determine risks. The results based on these analysis techniques show that the Spanish labor market is characterized more by the notion of “job security” than “employment security.” We conclude that there are difficulties in adjusting to the external shocks imposed, as well as in addressing changes in the careers of workers without a significant loss of security.