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Duration and Risk of Unemployment in Argentina


  • Galiani, Sebastian
  • Hopenhayn, Hugo A.


After a decade of structural reforms, unemployment rates have tripled in Argentina. This paper is concerned with the measurement of unemployment risk and its distribution. We show the importance of considering re-incidence in the measurement of risk and develop a methodology. Our estimates for Argentina show that, though the typical unemployment spell is short, once re-incidence is taken into account, unemployment risk is high, has risen substantially in the last decade and is shared very unequally in the labor force. This counters the established view that unemployment is a small risk, short-duration phenomenon, which arises when re-incidence is not considered.

Suggested Citation

  • Galiani, Sebastian & Hopenhayn, Hugo A., 2000. "Duration and Risk of Unemployment in Argentina," Center for International and Development Economics Research (CIDER) Working Papers 233164, University of California-Berkeley, Department of Economics.
  • Handle: RePEc:ags:ucbewp:233164

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    References listed on IDEAS

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    Cited by:

    1. Berlinski, Samuel & Galiani, Sebastian, 2007. "The effect of a large expansion of pre-primary school facilities on preschool attendance and maternal employment," Labour Economics, Elsevier, vol. 14(3), pages 665-680, June.
    2. Sebastian Galiani & Federico Sturzenegger, 2008. "The Impact of Privatization on the Earnings of Restructured Workers: Evidence From the Oil Industry," Journal of Labor Research, Springer, vol. 29(2), pages 162-176, June.
    3. James Albrecht & Lucas Navarro & Susan Vroman, 2009. "The Effects of Labour Market Policies in an Economy with an Informal Sector," Economic Journal, Royal Economic Society, vol. 119(539), pages 1105-1129, July.
    4. Ana Iturriza & Arjun S. Bedi & Robert Sparrow, 2011. "Unemployment Assistance and Transition to Employment in Argentina," Economic Development and Cultural Change, University of Chicago Press, vol. 59(4), pages 811-837.
    5. Guillermo Cruces & Quentin Wodon, 2003. "Argentina’s crises and the Poor, 1995-2002," Económica, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata, vol. 0(1-2), pages 55-96, January-D.
    6. Achim Schmillen & Joachim Möller, 2009. "Determinants of Lifetime Unemployment - A Micro Data Analysis with Censored Quantile Regressions," Working Papers 275, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    7. Castillo, Victoria & Novick, Marta & Yoguel, Gabriel & Rojo Brizuela, Sofía, 2006. "Labour mobility in Argentina since the mid-1990s: the hard road back to formal employment," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    8. Galiani, Sebastian & Sanguinetti, Pablo, 2003. "The impact of trade liberalization on wage inequality: evidence from Argentina," Journal of Development Economics, Elsevier, vol. 72(2), pages 497-513, December.
    9. Nadine Leiner-Killinger & Víctor López Pérez & Roger Stiegert & Giovanni Vitale, 2007. "Structural reforms in EMU and the role of monetary policy – a survey of the literature," Occasional Paper Series 66, European Central Bank.
    10. Guataquí, Juan Carlos & Forero, Nohora & García, Andrés Felipe, 2009. "¿A quiénes afecta el desempleo? Análisis de la tasa de incidencia en Colombia," REVISTA LECTURAS DE ECONOMÍA, UNIVERSIDAD DE ANTIOQUIA - CIE, July.
    11. Sebastián Galiani and Federico Sturzenegger, "undated". "The Impact of Privatization on the Earnings of Restructured Workers," Business School Working Papers longterm, Universidad Torcuato Di Tella.
    12. World Bank, 2001. "Household Risk, Self-Insurance and Coping Strategies in Urban Argentina," World Bank Other Operational Studies 15467, The World Bank.
    13. Paula Bustos, 2005. "The impact of trade liberalization on skill upgrading. Evidence from Argentina," Economics Working Papers 1189, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2011.
    14. Veracierto, Marcelo, 2007. "On the short-run effects of labor market reforms," Journal of Monetary Economics, Elsevier, vol. 54(4), pages 1213-1229, May.
    15. Ana Carolina Ortega Masagué, 2006. "El diferencial entre las tasas de desempleo de hombres y mujeres en Argentina," Working Papers 2006-08, FEDEA.

    More about this item


    Developing labor markets; hazard functions; unemployment duration; unemployment risk; International Development; J0; J6;

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers


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