Six Ways to Leave Unemployment

Pedro Portugal (pportugal@bportugal.pt) and John Addison

No 954, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper uses a unique Portuguese data set to examine the effect of unemployment benefit receipt and maximum duration of benefits on escape rates from unemployment. The focus is on the time profile of transitions out of unemployment. The novel aspect of the study resides in its identification of six destination states, namely, open-ended employment, fixed-term contracts, part-time work, government-provided jobs, self employment, and labor force withdrawal. Strong evidence of disincentive effects of the unemployment benefit system is reported. This result obtains both in general and for the various destination states, among which some marked behavioral differences are detected.

Keywords: unemployment benefits; unemployment duration; competing risks (search for similar items in EconPapers)
JEL-codes: J64 J65 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2003-12
New Economics Papers: this item is included in nep-ent and nep-lab
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Citations: View citations in EconPapers (24)

Published - published in: Scottish Journal of Political Economy, 2008, 55 (4), 393 - 419

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Related works:
Journal Article: SIX WAYS TO LEAVE UNEMPLOYMENT (2008)
Working Paper: Six Ways to Leave Unemployment (2003)
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