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The Relationship between Unemployment Benefits and Re-employment Probabilities: Evidence from Spain

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  • Stephen P. Jenkins
  • Carlos GarcÌa-Serrano

Abstract

We provide the first Spanish evidence about the effects on re-employment probabilities of variations in benefit levels and time-to-exhaustion. Increases in unemployment insurance (UI) benefit levels had a small disincentive effect on the re-employment hazard on average. Around this average, there were larger disincentive effects for men with elapsed durations between 4 and 18 months, whereas for men unemployed longer than 18 months, or for men resident in the south, the effect was negligible. Re-employment hazards increased when UI exhaustion was imminent, but the change was small. Extensions to unemployment assistance eligibility in 1989 for men aged 45+ years lowered re-employment probabilities. Copyright 2004 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 66 (2004)
Issue (Month): 2 (05)
Pages: 239-260

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Handle: RePEc:bla:obuest:v:66:y:2004:i:2:p:239-260

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Cited by:
  1. Alfonso Alba-Ramirez & Jose Maria Arranz Muñoz & Fernando Muñoz-Bullon, 2006. "Unemployment Duration, Unemployment Benefits And Recalls," Business Economics Working Papers, Universidad Carlos III, Departamento de Economía de la Empresa wb066218, Universidad Carlos III, Departamento de Economía de la Empresa.
  2. repec:ese:iserwp:2008-36 is not listed on IDEAS
  3. JOSE Ma ARRANZ & Juan Muro, 2004. "Recurrent unemployment, welfare benefits and heterogeneity," International Review of Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 18(4), pages 423-441.
  4. Michael Kind, 2013. "A Level Playing Field – An Optimal Weighting Scheme of Dismissal Protection Characteristics," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0442, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  5. Iturriza, Ana & Bedi, Arjun S. & Sparrow, Robert, 2008. "Unemployment Assistance and Transition to Employment in Argentina," IZA Discussion Papers 3579, Institute for the Study of Labor (IZA).
  6. José María Arranz & Carlos García- Serrano, 2004. "The influence of previous labour market experiences on subsequent job tenure," Hacienda Pública Española, IEF, IEF, vol. 168(1), pages 47-68, march.
  7. Alba-Ramirez, Alfonso & Arranz, Jose M. & Munoz-Bullon, Fernando, 2007. "Exits from unemployment: Recall or new job," Labour Economics, Elsevier, Elsevier, vol. 14(5), pages 788-810, October.
  8. Sergi Jiménez Martín & Judit Vall Castello, 2009. "Business Cycle Effects on Labour Force Transitions for Older People in Spain," Working Papers 2009-25, FEDEA.
  9. Nagore García, Amparo & van Soest, Arthur, 2014. "Unemployment Transitions to Stable and Unstable Jobs Before and During the Crisis," IZA Discussion Papers 8121, Institute for the Study of Labor (IZA).
  10. Helmut Rainer & Thomas Siedler, 2008. "Social Networks in Determining Migration and Labor Market Outcomes: Evidence from the German Reunification," CRIEFF Discussion Papers, Centre for Research into Industry, Enterprise, Finance and the Firm 0811, Centre for Research into Industry, Enterprise, Finance and the Firm.
  11. Shively, Thomas S. & Walker, Stephen G. & Damien, Paul, 2011. "Nonparametric function estimation subject to monotonicity, convexity and other shape constraints," Journal of Econometrics, Elsevier, Elsevier, vol. 161(2), pages 166-181, April.

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