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Re-employment Probabilities for Spanish Men: What Role Does the Unemployment Benefit System Play?

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  • Stephen P. Jenkins
  • Carlos García-Serrano

Abstract

We analyse the re-employment probabilities of almost 330,000 Spanish men aged 20-59 years who began a unemployment insurance (UI) spell between February 1987 and November 1991 using data derived from the national unemployment benefit administration database (SIPRE) and discrete time duration models with flexible baseline hazards. We show: (i) the level of UI benefits has a relatively small disincentive effect on re-employment rates; (ii) re-employment exit hazards increase as UI exhaustion approaches but, again, the effect is relatively small. (iii) Extensions to Unemployment Assistance eligibility lowered reemployment probabilities. Also (iv) there are clear seasonal and cyclical effects on reemployment rates, and (v) rates are much higher for those who enter UI from a fixed-term employment contract rather than permanent one, and (vi) for young workers. These results are consistent with other research drawing attention to the impact on unemployment of inflexibilities in Spanish labour market institutions, combined with low inter-regional mobility and reliance by many for support via their family.

Suggested Citation

  • Stephen P. Jenkins & Carlos García-Serrano, 2000. "Re-employment Probabilities for Spanish Men: What Role Does the Unemployment Benefit System Play?," Discussion Papers of DIW Berlin 216, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp216
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    References listed on IDEAS

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    Cited by:

    1. Guell, Maia & Hu, Luojia, 2006. "Estimating the probability of leaving unemployment using uncompleted spells from repeated cross-section data," Journal of Econometrics, Elsevier, vol. 133(1), pages 307-341, July.
    2. Guell, Maia, 2001. "Fixed-term contracts and the duration distribution of unemployment," LSE Research Online Documents on Economics 20122, London School of Economics and Political Science, LSE Library.
    3. Peter Fredriksson & Bertil Holmlund, 2006. "Improving Incentives in Unemployment Insurance: A Review of Recent Research," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 357-386, July.
    4. Richard Layte & Tim Callan, 2001. "Unemployment, Welfare Benefits and the Financial Incentive to Work," The Economic and Social Review, Economic and Social Studies, vol. 32(2), pages 103-129.
    5. Knut Roed & Tao Zhang, 2003. "Does Unemployment Compensation Affect Unemployment Duration?," Economic Journal, Royal Economic Society, vol. 113(484), pages 190-206, January.
    6. Bart Cockx & Jean Ries, 2004. "The Exhaustion of Unemployment Benefits in Belgium. Does it Enhance the Probability of Employment?," CESifo Working Paper Series 1226, CESifo.
    7. Aysit Tansel & H. Mehmet Taşçı, 2010. "Hazard Analysis of Unemployment Duration by Gender in a Developing Country: The Case of Turkey," LABOUR, CEIS, vol. 24(4), pages 501-530, December.
    8. Emmanuel Duguet & Florent Frémigacci & Yannick L’Horty, 2008. "Indemnisation du chômage et retour à l’emploi : un examen économétrique," Documents de recherche 08-07, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    9. Ayala, Luis & Rodriguez, Magdalena, 2007. "Barriers to employment and welfare dynamics: Evidence from Spain," Journal of Policy Modeling, Elsevier, vol. 29(2), pages 237-257.
    10. repec:pri:cepsud:158krueger is not listed on IDEAS
    11. Cristina Ferná, "undated". "The Role of Education vis-à-vis Job Experience in Explaining the Transitions to Employment in the Spanish Youth Labour Market," Working Papers 2003-06, FEDEA.
    12. Anders Forslund & Alan Krueger, 2010. "Did Active Labor Market Policies Help Sweden Rebound from the Depression of the Early 1990s?," NBER Chapters, in: Reforming the Welfare State: Recovery and Beyond in Sweden, pages 159-187, National Bureau of Economic Research, Inc.
    13. Kuo, Mien-Yun & Smith, Eric, 2009. "Marketplace matching in Britain: Evidence from individual unemployment spells," Labour Economics, Elsevier, vol. 16(1), pages 37-46, January.
    14. Anders Forslund & Alan Krueger, 2010. "Did Active Labor Market Policies Help Sweden Rebound from the Depression of the Early 1990s?," NBER Chapters, in: Reforming the Welfare State: Recovery and Beyond in Sweden, pages 159-187, National Bureau of Economic Research, Inc.

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