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Fixed-term contract flexibility and internal migration: Lessons from Spain

Year: 2026

Type: article

Abstract: ABSTRACT We study how fixed-term contracts affect within-country migration. A job search model with regional labor markets shows that migration responds to job offer arrival and separation rates separately, but that simultaneous increases offset. Exploiting Spain’s 1984 liberalization of fixed-term contracts using a cohort-based regression discontinuity design and administrative data tracking individuals from labor market entry, we find the reform left internal mobility of young male entrants largely unchanged, although sizable effects for more educated workers cannot be ruled out. Fixed-term contract flexibilization therefore appears a poor policy for regional reallocation.

Source: Journal of Policy Modeling

DOI: 10.1016/j.jpolmod.2026.107109

Authors: Jorge González Chapela, José I. Silva

Institutions: Centro Universitario de la Defensa Zaragoza, Universitat de Girona

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $1,500