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Recurrent unemployment, welfare benefits and heterogeneity

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  • JOSE Ma ARRANZ
  • Juan Muro

Abstract

The objective of this paper is to investigate the causes of the recurrences of individuals in unemployment during benefit periods. So as to attain this objective, we use administrative data from the Spanish Employment Agency to estimate a duration model with multiple spells that allows for unemployment state dependence through lagged unemployment duration in order to distinguish the heterogeneity and scarring effects. We find that an increase in the duration of previous unemployment benefit periods lengthens the expected duration of future unemployment benefit periods. True state dependence and heterogeneity, intensity of job search and local labour market conditions are among the elements that explain this unemployment state dependence.

Suggested Citation

  • 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.
    • Handle: RePEc:taf:irapec:v:18:y:2004:i:4:p:423-441
    DOI: 10.1080/0269217042000266436
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    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. de Koning, Jaap & Kroes, Hassel & van der Steen, Alex, 2006. "Patterns of work and use of benefits over the life course: Estimates and simulations based on Dutch microdata," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-112, WZB Berlin Social Science Center.
    6. NAGORE GARCIA Amparo & VAN SOEST Arthur, 2016. "Unemployment Exits Before and During the Crisis," LISER Working Paper Series 2016-14, Luxembourg Institute of Socio-Economic Research (LISER).
    7. Alfonso Alba & Jose Maria Arranz & Fernando Muñoz-Bullón, 2012. "Re-employment probabilities of unemployment benefit recipients," Applied Economics, Taylor & Francis Journals, vol. 44(28), pages 3645-3664, October.
    8. Pilar Olave & Eva Maria Andres & Jose Tomas Alcala, 2008. "Studying the relationship between unemployment periods in Spain: a nonparametric approach," Applied Economics Letters, Taylor & Francis Journals, vol. 15(9), pages 683-687.
    9. Amparo Nagore García & Arthur Soest, 2017. "Unemployment Exits Before and During the Crisis," LABOUR, CEIS, vol. 31(4), pages 337-368, December.
    10. Blázquez, Maite & Herrarte, Ainhoa & Sáez, Felipe, 2012. "Occupational matching: The case of job seekers inscribed at Public Employment Offices," Working Papers in Economic Theory 2012/02, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).

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