Building competitiveness: Insider aiding | The Economist

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This is an interesting article from the Economist comparing protected employment practices in Spain (and to a lesser extent in France and Germany), with the Anglo-Saxon norms in the US or the UK. Check it out! 

Building competitiveness: Insider aiding | The Economist.

The article concludes that protected employment practices in Spain have directly  contributed to Spanish youth unemployment reaching 50%.

If we accept the article’s argument for structural  reforms and the removal of labour market rigidities in the Private Sector (in favour of the Anglo-Saxon model), the same argument should surely apply to the Public Sector too- in effect, outsourcing vast swathes of the Public Sector across Europe? Or am I missing something?

 

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