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Another look at unemployment duration: exit to a permanent vs. a temporary job

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Author Info
Olympia Bover () (Banco de España)
Ramón Gómez (European Central Bank)

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Abstract

We investigate the determinants of exit rates from unemployment to permanent and temporary jobs. First, we present a theoretical model to discuss the effects of reservation wages, unemployment benefits and job offers on the exit probabilities to permanent and temporary jobs. Then, using micro data from the Spanish Labour Force Survey we estimate a multinomial duration model, including unemployment benefits, the cycle and personal characteristics. Important differential effects are unmasked by distinguishing by type of employment. The negative impact of receiving benefits dominates the combined effect of business cycle variables in exits to temporary employment but not to permanent jobs. (Copyright: Fundación SEPI)

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File URL: ftp://ftp.funep.es/InvEcon/paperArchive/May2004/v28i2a4.pdf
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Publisher Info
Article provided by Fundación SEPI in its journal Investigaciones Económicas.

Volume (Year): 28 (2004)
Issue (Month): 2 (May)
Pages: 285-314
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:iec:inveco:v:28:y:2004:i:2:p:285-314

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Postal: Investigaciones Economicas Fundación SEPI Quintana, 2 (planta 3) 28008 Madrid Spain
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Related research
Keywords: Unemployment duration; temporary vs. permanent job; unemployment benefits; business cycle;

Find related papers by JEL classification:
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Olympia Bover & Pilar García-Perea & Pedro Portugal, 2000. "Labour market outliers: Lessons from Portugal and Spain," Economic Policy, CEPR, CES, MSH, vol. 15(31), pages 379-428, October. [Downloadable!] (restricted)
  2. Guido W. Imbens & Lisa M. Lynch, 1993. "Re-Employment Probabilities over the Business Cycle," NBER Working Papers 4585, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Pablo Antolín, 1995. "Transition Probabilities To Employment And Non-Participation," Working Papers. Serie EC 1995-20, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
  4. Narendranathan, W. & Stewart, M.B., 1989. "Modelling The Probability Of Leaving Unemployment: Competing Risks Models With Flexible Baseline Hazards," The Warwick Economics Research Paper Series (TWERPS) 331, University of Warwick, Department of Economics.
  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. [Downloadable!] (restricted)
    Other versions:
  6. Ángel Estrada & Pilar García-Perea & Mario Izquierdo, 2002. "Los flujos de trabajadores en España: el impacto del empleo temporal," Banco de España Working Papers 0206, Banco de España. [Downloadable!]
  7. Sueyoshi, Glenn T, 1995. "A Class of Binary Response Models for Grouped Duration Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 411-31, Oct.-Dec.. [Downloadable!] (restricted)
  8. Narendranathan, W & Stewart, Mark B, 1993. "How Does the Benefit Effect Vary as Unemployment Spells Lengthen?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(4), pages 361-81, Oct.-Dec.. [Downloadable!] (restricted)
  9. Alfonso Alba-Ramírez, 1998. "Re-employment probabilities of young workers in Spain," Investigaciones Economicas, Fundación SEPI, vol. 22(2), pages 201-224, May. [Downloadable!]
  10. Carrasco, Raquel, 1999. " Transitions to and from Self-employment in Spain: An Empirical Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(3), pages 315-41, August. [Downloadable!] (restricted)
    Other versions:
  11. Olympia Bover & Ramón Gómez, 1999. "Another Look at Unemployment Duration: Long-Term Unemployment and Exit to a Permanent Job," Banco de España Working Papers 9903, Banco de España.
  12. Olympia Bover & Ramón Gómez, 1999. "Another Look at Unemployment Duration: Long-Term Unemployment and Exit to a Permanent Job," Banco de España Working Papers 9903, Banco de España.
  13. Jenkins, Stephen P, 1995. "Easy Estimation Methods for Discrete-Time Duration Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 129-38, February.
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Yolanda Rebollo Sanz, 2009. "Landing a Permanent Contract: Do Job Interruptions and Employer Diversification Matter?," Working Papers 09.07, Universidad Pablo de Olavide, Department of Economics. [Downloadable!]
  2. Mario García-Ferreira & Ernesto Villanueva, 2007. "Employment risk and household formation: evidence from differences in firing costs," Banco de España Working Papers 0737, Banco de España. [Downloadable!]
  3. Cristina Barceló, 2006. "Housing tenure and labour mobility: a comparison across European countries," Banco de España Working Papers 0603, Banco de España. [Downloadable!]
  4. Fabio Berton & Francesco Devicienti & Lia Pacelli, 2007. "Temporary jobs: Port of entry, Trap, or just Unobserved Heterogeneity?," LABORatorio R. Revelli Working Papers Series 68, LABORatorio R. Revelli, Centre for Employment Studies. [Downloadable!]
  5. Julen ESTEBAN-PRETEL & NAKAJIMA Ryo & TANAKA Ryuichi, 2009. "Are Contingent Jobs Dead Ends or Stepping Stones to Regular Jobs? Evidence from a Structural Estimation," Discussion papers 09002, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
  6. Fabio Berton, 2008. "The (long) run out of unemployment: are temporary jobs the shortest way?," LABORatorio R. Revelli Working Papers Series 76, LABORatorio R. Revelli, Centre for Employment Studies. [Downloadable!]
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This page was last updated on 2009-12-6.


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