An extra time duration model with application to unemployment duration under benefits in Spain
AbstractThis paper postulates that the effect of unemployment benefits on the hazard rates changes considerably using a traditional duration model that uses only unemployment insurance (UI) data, or deals with unemployment assistance (UA) as a mere extension of UI, instead of an extra time duration model that accounts separately for transition rates to work of the unemployed who receive UI and UA. For UI recipients the hazard rate rises dramatically when UI benefits lapse approaches. On the contrary, for UA recipients the hazard rate remains flat or even has a slight fall nearby the UA lapse. Finally, there is a group of unemployed qualified for UA that quit UI due to the income fall that they will experience when they pass from UI to UA.
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Bibliographic InfoArticle provided by IEF in its journal Hacienda Pública Española/Revista de Economía Pública.
Volume (Year): 171 (2004)
Issue (Month): 4 (december)
: unemployment insurance; unemployment assistance; mixed proportional hazard model; sequential exits; unobserved heterogeneity.;
Other versions of this item:
- José María Arranz & Juan Muro Romero, 2003. "An extra time duration model with application to unemployment duration under benefits in Spain," Economic Working Papers at Centro de Estudios Andaluces E2003/38, Centro de Estudios Andaluces.
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
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