Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/158532
Authors: 
Rebollo-Sanz, Yolanda F.
García-Pérez, J. Ignacio
Year of Publication: 
2015
Citation: 
[Journal:] SERIEs - Journal of the Spanish Economic Association [ISSN:] 1869-4195 [Volume:] 6 [Year:] 2015 [Issue:] 1 [Pages:] 1-41
Abstract: 
Unemployment insurance is usually found to show negative effects in the transition from unemployment to a new job. However, the extent to which workers' careers might improve or deteriorate as a result of the unemployment insurance system is not immediately clear. This paper addresses the effects of certain aspects of this system on employment stability by jointly accounting for benefits endogeneity, dynamic selection issues and occurrence dependence. The analysis is undertaken for a dual labour market, such as the market in Spain, where temporary and permanent workers differ with respect to numerous individual and labour market characteristics. We find that non-insured unemployed workers experience a greater rate of transition to employment than insured workers. But we also find that benefits encourage job stability for temporary workers not only by increasing subsequent job tenure but also by increasing the probability of entering into a permanent contract. Finally, we get that shortening the duration of the benefit entitlement period does not seem to lead to significant gains in overall employment stability, which increases at most by 4.3 %.
Subjects: 
Unemployment insurance
Multivariate mixed proportional hazard model
Job turnover
Employment stability
Employment dynamics
JEL: 
J63
J64
J65
J68
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/2.0/
Document Type: 
Article

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