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The social cost of unemployment in Spain:who are the losers?

Author

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  • Lucia Gorjon
  • Sara De La Rica
  • Antonio Villar

Abstract

The socialcost of unemploymentis an evaluationprotocol proposed by Gorjón, de la Rica and Villar (2018) that integrates into a single indicator three differentdimensions of this phenomenon: incidence (the conventional unemployment rate), severity (depending on the unemployment duration and the lost income) and hysteresis (the probability of remaining unemployed). This indicator corresponds to the aggregate disutility of unemployed workersand can thus be regarded as a measure of the social welfare loss due to unemployment. We apply here this evaluation protocol to the Spanish labour market, using the official register of unemployed workers compiled by the Public Employment Service, focusing on the differences among the types of unemployed workers that can be defined according to gender, age, level of studies, unemployment duration,and type of compensation received.Then we identify the population subgroups that suffer most the impact of unemployment.

Suggested Citation

  • Lucia Gorjon & Sara De La Rica & Antonio Villar, 2019. "The social cost of unemployment in Spain:who are the losers?," Working Papers - Economics wp2019_14.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    • Handle: RePEc:frz:wpaper:wp2019_14.rdf
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    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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