Often  2  BIS central bankers’ speeches  young workers have temporary contracts, and they are subject to last-in-first-out rules when personnel reductions take place. Labour market institutions that differentiate across worker groups often penalize youth. In particular, dual employment protection legislation (firing costs) that depends on employment duration (e.g.
Italy, Spain) is commonly seen as an important factor behind the spectacular rise in youth unemployment during the crisis in e.g. Spain. The ease of ending temporary contracts relative to permanent ones has led to a situation where young workers on temporary contracts can be laid off without costs, while older workers on permanent contracts have largely kept their jobs.