Labour Market Flexibility and Regional Unemployment Rate Dynamics: Spain (1980-1995)

1. Investment (growth rate of capital stock)

2. Real oil prices

12.9-

12.1

1980

3. Real social security benefits per person

12.8 -

12.7-

12.6-

12.5-

12.4-

12.3 -

12.2-

1985

1990

1995

4. Indirect taxes (as a % of GDP)

.016-

.014-

.012 -

.010-

.008-

.006-

.004-

6. Working Age Population Growth

1980         1985         1990         1995

30