Thenew generations “do not seem to face”, in terms of temporality, a more precarious job marketthan previous generations, according to the Bank of Spain, although, in terms of partiality, the institution does observe a“clear structural trend” towards shorter working hoursIt affects all age groups and all educational levels, but more intensely for less educated and medium-educated youth.
“In terms of job insecurity, the younger generations face slightly less time, but, on the other hand, those who remain on temporary contracts experience higher turnover, whilebias has accelerated its rate of progress, especially among young people with medium and low education, “stresses the body.
This is stated by the institution that governs Pablo Hernández de Cos in aarticle in which analyzes the labor trends between generations in the last decades. From his study, which only takes into account the male population due to the lower participation of women in the labor market, several conclusions are obtained.
First, the Bank of Spain finds thatthe average real wages received at each age by the most skilled workers have fallenthroughout the different generations, while they have hardly changed in the case of lower-skilled workers.
When these data are combined with the amount of time worked, the result is ageneral fall in average annual incomesin the most recent period, since the 2008 financial crisis. At this point, the Bank of Spain points out that the worsening of annual incomes suffered by younger generations “seems to have a certain cyclical component”.
Better trained, less salary
In this study, the Bank of Spain points out thatthe average monthly salary received by the least trained workers has hardly changedthroughout the different generations, while in the case of the best trained, falls are observed in the most recent generations.
Thus, the average monthly salary of low-educated workers born in 1967slightly exceeded 1,000 euros at the age of 20, progressively increasing, in line with the accumulation of work experience, to exceed 2,000 euros per month at the age of 40.
In the case of highly educated workers, a university student born in 1967 received an average salary of just over 2,500 euros per month at age 30, a figure that increases with age, reaching close to 4,000 euros at age 40.
According to the Bank of Spain, before the 2008 crisis, the average monthly wages before 30 years of the generations born later were similar to those received by previous generations, and even somewhat higher in the case of low-paid workers. qualification. However, with the arrival of the crisis and in subsequent years, “average wages stopped growing with the same intensity due to increases in experience, a widespread phenomenon among all generations and educational levels “.
In this way, a highly educated worker born in 1977 received an average salary at age 40 (in 2017, that is, after the end of the crisis period) “significantly lower” than that received at that same age by those born in 1967 While those born in 1967 were between 30 and 40 years old in the 1997-2007 decade, an expansive period, those born in 1977 were that age between 2007 and 2017.
ThisPost-crisis wage drop, he says, has also affected less-educated workers, “but to a lesser extent”. However, if the effect of the economic cycle on wages is added, the differences between generations hardly change. “This suggests that the phenomenon of lower average wages observed after the financial crisis for the most recent generations could be due not to causes related mainly to the cyclical position of the economy, but to factors of a structural nature, and, therefore, would have a more permanent, “says the institution.
“Until the arrival of the 2008 crisis, average full-time monthly wages presented aquite marked intergenerational stability, only broken by slight increases in the case of the less educated youth and small decreases in the more qualified middle-aged workers. However, the arrival of this crisis coincided with generalized wage moderations for the new cohorts, which have been more intense for the more educated workers, “he summarizes.
If we examine the total annual salary income, which includesperiods of unemployment and hours worked,In addition to full-time monthly wages, the conclusion of the Bank of Spain is that it has produced a general fall in annual wage incomes for the most recent generations, which seems to have “a certain cyclical component”.
As an example, a worker born in 1967 or 1977 with low education received, on average, around 2,000 euros per year when he was 20 years old. However, at that same age, a worker with the same level of training born in 1987 received a much higher income of almost 6,000 euros per year.
This improvement also occurred at other ages and also for highly trained workers. So,the typical annual income of a university worker born in 1967 was slightly more than 20,000 euros per yearat age 30, while, at that same age, the income of one born 10 years later increased to 25,000 euros.
However, with the arrival of the financial crisis, annual incomes “worsened significantly” for all workers, regardless of their level of training. However, if the effect of the economic cycle is taken into account, a large part of the differences between generations disappear, so that the income curves have a very similar profile, regardless of the year of birth.