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The Nineties in Spain: so much Flexibility in the Labor Market?

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Author Info
José Ignacio García Pérez () (Centro de Estudios Andaluces y Universidad Pablo de Olavide)
Fernando Múñoz Bullón () (Universidad Carlos III de Madrid)

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Abstract

This paper examines movements into and out of employment in the Spanish labor market throughout the nineties. We analize how differences in personal and economic circumstances influence such movements. In addition, we consider the importance of duration dependence in determining them. Our main findings are that: (i)Young workers, women and those with lower qualification levels are more likely to be affected by high labor turnover; (ii)The existence of unobserved heterogeneity has important consequences in the unemployment hazard rate; (iii)In the 90´s, employment hazard rates were substantially affected by the extensive use of fixed-term contracts, although the 1997 labor market reform seems to have reduced this hazard rate; (iv)The intervention of Temporary Help Agencies has a positive impact on the likelihood of leaving unemployment, although only for short-term unemployed individuals; at the same time, however, the employment hazard rate is substantially higher within these agencies.

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Publisher Info
Paper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number E2001/01.

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Length: 42 pages
Date of creation: Dec 2001
Date of revision:
Handle: RePEc:cea:doctra:e2001_01

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Related research
Keywords: Employment and unemployment hazard rates; duration dependence; unobserved heterogeneity; Temporary Help Agencies.;

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion

References listed on IDEAS
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  1. Vishwanath, Tara, 1989. "Job Search, Stigma Effect, and Escape Rate from Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 487-502, October. [Downloadable!] (restricted)
  2. J. Ignacio García Pérez, 2001. "Non-stationary Job Search when Jobs are not Forever: A Structural Estimation," Economics Working Papers 556, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  3. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March. [Downloadable!] (restricted)
  4. Meyer, Bruce D, 1990. "Unemployment Insurance and Unemployment Spells," Econometrica, Econometric Society, vol. 58(4), pages 757-82, July. [Downloadable!] (restricted)
    Other versions:
  5. J. Ignacio García Pérez & Fernando Muñoz Bullón, 2001. "Temporary Help Agencies and Workers' Occupational Mobility," Economics Working Papers 554, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  6. Wadsworth, Jonathan, 1991. "Unemployment Benefits and Search Effort in the UK Labour Market," Economica, London School of Economics and Political Science, vol. 58(229), pages 17-34, February. [Downloadable!] (restricted)
    Other versions:
  7. 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.
  8. Feinberg, Robert M, 1977. "Search in the Labor Market and the Duration of Unemployment: Note," American Economic Review, American Economic Association, vol. 67(5), pages 1011-13, December. [Downloadable!] (restricted)
  9. Namkee Ahn & José Ignacio García-Pérez, 2002. "Unemployment duration and workers' wage aspirations in Spain," Spanish Economic Review, Springer, vol. 4(2), pages 103-118. [Downloadable!] (restricted)
    Other versions:
  10. Pissarides, Christopher A, 1992. "Loss of Skill during Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1371-91, November. [Downloadable!] (restricted)
  11. Dale Mortensen, 1984. "Job Search and Labor Market Analysis," Discussion Papers 594, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
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  12. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October. [Downloadable!] (restricted)
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  13. van den Berg, Gerard J, 1990. "Nonstationarity in Job Search Theory," Review of Economic Studies, Blackwell Publishing, vol. 57(2), pages 255-77, April. [Downloadable!] (restricted)
  14. 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:
  15. Maia Güell & Barbara Petrongolo, 2000. "Workers Transitions from Temporary to Permanent Employment: the Spanish Case," CEP Discussion Papers dp0438, Centre for Economic Performance, LSE.
  16. Nickell, Stephen J, 1979. "Estimating the Probability of Leaving Unemployment," Econometrica, Econometric Society, vol. 47(5), pages 1249-66, September. [Downloadable!] (restricted)
  17. 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)
  18. Jovanovic, Boyan, 1979. "Firm-specific Capital and Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1246-60, December. [Downloadable!] (restricted)
  19. 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)
  20. Narendranathan, Wiji & Nickell, Stephen, 1985. "Modelling the process of job search," Journal of Econometrics, Elsevier, vol. 28(1), pages 29-49, April. [Downloadable!] (restricted)
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