Luis Garicano on Spain, Europe, and the Future of Work

Luis Garicano on Spain, Europe, and the Future of Work

Luis Garicano has one of the more unusual résumés in economics: trained at the University of Chicago Booth School under Gary Becker, Kevin Murphy, and Sherwin Rosen, he left academia for a stint as a member of the European Parliament before returning to research, now at the London School of Economics for a second time. His new book, Messy Jobs, co-authored with Jin Li and Yanhui Wu, argues that AI won't cause mass unemployment for a surprising reason: it will make jobs messier, not simpler, and messiness is precisely what AI struggles with.

Tyler and Luis start their conversation with Spain — housing, NIMBYism, and the productivity crisis; Spanish literature and why the Civil War still looms so large; and what Chicago taught Luis about party discipline in European politics. Then to the EU's unanimity problem, capital markets, and Denmark's flexicurity model; a round of overrated-versus-underrated on Rosalía, Penélope Cruz, and Sgt. Pepper's; and finally into Messy Jobs — why retraining programs fail, whether AI's leisure dividend has arrived, and whether Spain could ever achieve AI sovereignty.

Read a transcript enhanced with helpful links, or watch the full video on YouTube.

Recorded July 28th, 2026.

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Timestamps:

00:00:00 - Intro

00:01:05 - On Spain's housing and political paralysis

00:11:08 - On Spanish literature and the Civil War

00:16:52 - On Basque and Catalan public finance

00:18:59 - On party discipline and political selection

00:22:03 - On the EU's unanimity problem

00:28:47 - On flexicurity and European labor rigidity

00:30:24 - Overrated vs. underrated

00:33:12 - On the future of Spanish language

00:35:01 - On why AI won't cause mass unemployment

00:48:38 - On what's next

00:50:11 - Outro

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