Unemployment Benefits for Self-employed Workers: An Evaluation Using Survival Analysis

Ignacio Moral-Arce, Javier Martín-Román and Ángel Martín-Román ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the effect of the Cessation of Activity Benefit (CAB)—a government policy aimed at self-employed workers—on non-employment spell durations in Spain. Using data from the Spanish Continuous Sample of Working Lives (MCVL), we apply flexible semiparametric survival models to address limitations of standard duration analysis. Our results show that self-employed individuals who receive the CAB experience non-employment spells approximately 4 to 6 months longer than their non-recipient counterparts. The extended duration appears largely driven by a moral hazard effect, as many beneficiaries remain out of work until the maximum benefit period (12 months) expires. These findings suggest that while the CAB provides valuable income support, it may inadvertently discourage timely re-entry into the labour market.

Keywords: Self-employment; Evaluation; Survival Analysis; Opportunistic Behaviour. (search for similar items in EconPapers)
JEL-codes: D04 J08 J64 J65 K31 (search for similar items in EconPapers)
Date: 2025-07-18
New Economics Papers: this item is included in nep-eur
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:125373

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