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Duration of Unemployment in Spain: Relative Effects of Unemployment Benefit and Family Characteristics

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  • Ahn, Namkee
  • Ugidos-Olazabal, Arantza

Abstract

We estimate the effects of unemployment benefit and family situation on the unemployment duration in Spain. Empirical results indicate that the distinctions between the exits into employment and the exists from the labor force and between men and women are important. Although unemployment benefit reduces significantly the job-finding probabilities, its effects are much larger on exists from the labor force. Many people who decide to go out of the labor force delay their exists until they exhaust their unemployment benefits. Family situation also has strong effects on the duration of unemployment in Spain. Household heads have about twice larger job-finding probability than non-heads, and having a working household head or other working household members improves employment probability. This suggests that family connections in the labor market are important determinants of unemployment duration in Spain. Copyright 1995 by Blackwell Publishing Ltd

Suggested Citation

  • Ahn, Namkee & Ugidos-Olazabal, Arantza, 1995. "Duration of Unemployment in Spain: Relative Effects of Unemployment Benefit and Family Characteristics," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(2), pages 249-264, May.
    • Handle: RePEc:bla:obuest:v:57:y:1995:i:2:p:249-64
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    Cited by:

    1. Irina Denisova, 2001. "Staying Longer on Unemployment Register in Russia: Lack of Education, Bad Luck or Something Else?," Working Papers w0017, New Economic School (NES), revised Nov 2002.
    2. Marta C. Lopes, 2022. "A review on the elasticity of unemployment duration to the potential duration of unemployment benefits," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1212-1224, September.
    3. Namkee Ahn & Arantza Ugidos, 1996. "The effects of the labor market situation of parents on children: inheritance of unemployment," Investigaciones Economicas, Fundación SEPI, vol. 20(1), pages 23-41, January.
    4. Namkee Ahn & Sara de la Rica & Arantza Ugidos, 1998. "Willingness to Move for Work and Unemployment Duration in Spain," Working Papers wp1998_9801, CEMFI.
    5. Olympia Bover & Manuel Arellano & Samuel Bentolila, 2002. "Unemployment Duration, Benefit Duration and the Business Cycle," Economic Journal, Royal Economic Society, vol. 112(479), pages 223-265, April.
    6. Canziani, Patrizia & Petrongolo, Barbara, 2001. "Firing costs and stigma: A theoretical analysis and evidence from microdata," European Economic Review, Elsevier, vol. 45(10), pages 1877-1906, December.
    7. Francisco Guijarro, 2018. "Economic Recovery and Effectiveness of Active Labour Market Initiatives for the Unemployed in Spain: A Gender Perspective of the Valencian Region," Sustainability, MDPI, vol. 10(10), pages 1-15, October.
    8. Sabatier, Mareva, 2002. "Modes de recherche d’emploi et durée de chômage des jeunes : applications microéconométriques au Panel Téléphonique du CEREQ," L'Actualité Economique, Société Canadienne de Science Economique, vol. 78(1), pages 41-66, Mars.
    9. Mareva Sabatier, 2002. "Modes de Recherche d'Emploi et Durée de Chômage des Jeunes : Applications Econométriques au "Panel Téléphonique" du CEREQ," Post-Print hal-00825998, HAL.
    10. Namkee Ahn & José Ignacio García-Pérez, 2002. "Unemployment duration and workers' wage aspirations in Spain," Spanish Economic Review, Springer;Spanish Economic Association, vol. 4(2), pages 103-118.
    11. Aino Salomäki & Teresa Munzi, 1999. "Net Replacement Rates of the Unemployed. Comparison of various approaches," European Economy - Economic Papers 2008 - 2015 133, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    12. Ayala, Luis & Rodriguez, Magdalena, 2007. "Barriers to employment and welfare dynamics: Evidence from Spain," Journal of Policy Modeling, Elsevier, vol. 29(2), pages 237-257.
    13. Sabatier, Mareva, 2002. "Strategies D'Insertion Et Duree D'Acces Au Premier Emploi [Job search strategies and unemployment duration before the first job]," MPRA Paper 10500, University Library of Munich, Germany.
    14. P. Jenkins, Stephen & Garcia-Serrano, Carlos, 2000. "Re-employment probabilities for Spanish men: what role does the unemployment benefit system play?," ISER Working Paper Series 2000-17, Institute for Social and Economic Research.
    15. Catalina Jordi & Miguel Manjón, 2014. "The determinants of urban (un)employment duration: evidence from Barcelona," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 515-556, September.
    16. Francisco Guijarro, 2018. "Characteristics of Unemployed People, Training Attendance and Job Searching Success in the Valencian Region (Spain)," Data, MDPI, vol. 3(4), pages 1-12, November.
    17. Labeaga, José M. & Molina, José Alberto & Navarro, María, 2011. "Deprivation using satisfaction measures in Spain: An evaluation of unemployment benefits," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 287-310, March.
    18. Alba, Alfonso, 1998. "The effect of unemployment compensation on the re-employment probability in Spain," UC3M Working papers. Economics 4136, Universidad Carlos III de Madrid. Departamento de Economía.
    19. María Dolores Guilló & Antonia Díaz, 1998. "- Some Stylized Facts Of Spanish Unemployment," Working Papers. Serie AD 1998-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    20. Stephen P. Jenkins & Carlos García‐Serrano, 2004. "The Relationship between Unemployment Benefits and Re‐employment Probabilities: Evidence from Spain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(2), pages 239-260, May.
    21. Rafael Muñoz de Bustillo Llorente, 2002. "Spain and the Neoliberal Paradigm," SCEPA working paper series. 2002-02, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.

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