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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. Ana Iturriza & Arjun S. Bedi & Robert Sparrow, 2011. "Unemployment Assistance and Transition to Employment in Argentina," Economic Development and Cultural Change, University of Chicago Press, vol. 59(4), pages 811 - 837.
  2. Michael Kind, 2013. "A Level Playing Field – An Optimal Weighting Scheme of Dismissal Protection Characteristics," Ruhr Economic Papers 0442, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  3. José María Arranz & Carlos García-Serrano, . "The Influence Of Previous Labour Market Experiences On Subsequent Job Tenure," Working Papers 17-03 Classification-JEL , Instituto de Estudios Fiscales.
  4. Alba-Ramirez, Alfonso & Arranz, Jose M. & Munoz-Bullon, Fernando, 2007. "Exits from unemployment: Recall or new job," Labour Economics, Elsevier, vol. 14(5), pages 788-810, October.
  5. JOSE Ma ARRANZ & Juan Muro, 2004. "Recurrent unemployment, welfare benefits and heterogeneity," International Review of Applied Economics, Taylor & Francis Journals, vol. 18(4), pages 423-441.
  6. Shively, Thomas S. & Walker, Stephen G. & Damien, Paul, 2011. "Nonparametric function estimation subject to monotonicity, convexity and other shape constraints," Journal of Econometrics, Elsevier, vol. 161(2), pages 166-181, April.
  7. repec:ese:iserwp:2008-36 is not listed on IDEAS
  8. Helmut Rainer & Thomas Siedler, 2008. "Social Networks in Determining Migration and Labor Market Outcomes: Evidence from the German Reunification," CRIEFF Discussion Papers 0811, Centre for Research into Industry, Enterprise, Finance and the Firm.
  9. Sergi Jiménez Martín & Judit Vall Castello, 2009. "Business Cycle Effects on Labour Force Transitions for Older People in Spain," Working Papers 2009-25, FEDEA.
  10. Alfonso Alba-Ramirez & Jose Maria Arranz Muñoz & Fernando Muñoz-Bullon, 2006. "Unemployment Duration, Unemployment Benefits And Recalls," Business Economics Working Papers wb066218, Universidad Carlos III, Departamento de Economía de la Empresa.

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