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An extra time duration model with application to unemployment duration under benefits in Spain Author info | Abstract | Publisher info | Download info | Related research | Statistics José María Arranz () (Universidad de Alcalá)
Juan Muro Romero () (Universidad de Alcalá)
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This 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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Paper provided by Centro de Estudios Andaluces in its series Economic Working Papers at Centro de Estudios Andaluces with number
E2003/38.
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Length: 41 pages
Date of creation: 2003Date of revision:
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Keywords: unemployment benefits mixed proportional hazard model ; unobserved heterogeneity ; Other versions of this item:
Find related papers by JEL classification: J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis
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