Unemployment Insurance and Job Turnover in Spain

Yolanda Rebollo Sanz ()
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Yolanda Rebollo Sanz: Department of Economics, Universidad Pablo de Olavide
Authors registered in the RePEc Author Service: Yolanda F. Rebollo Sanz

No 10.08, Working Papers from Universidad Pablo de Olavide, Department of Economics

Abstract: The aim of this paper is to shed some light on the potential relationships between the unemployment insurance system and labour market turnover, seeking to further the traditional view that this system has only behavioural consequences for the labour supply side of the labour market. This study assumes the incentives embedded in the unemployment insurance system have a heterogeneous impact, depending on the type of labour market transition (quits versus layoffs and recalls versus new job entrances) and on a worker’s attachment to the labour market (gender and type of contract). The layoff hazard rate increases as workers qualify for unemployment benefits, while the quit hazard rate remains stable. Similarly, employment inflow increases sharply after the exhaustion of unemployment benefits. The timing and importance of the exit differs between recalls and new job entry and depends on a worker’s attachment to the labour market. The results show that unemployment benefits appear to favour job turnover and both firms’ and workers´ decisions seem to matter.

Keywords: Unemployment Insurance; Job Turnover; Multivariate Mix Proportional Hazard Models; Recall and Layoffs; Employment and Unemployment Duration (search for similar items in EconPapers)
JEL-codes: J63 J64 J65 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2010-10, Revised 2011-11
New Economics Papers: this item is included in nep-eur, nep-ias and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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http://www.upo.es/serv/bib/wps/econ1008.pdf First version, 2010 (application/pdf)
http://www.upo.es/serv/bib/wps/econ1008R.pdf Revised version, 2011 (application/pdf)

Related works:
Journal Article: Unemployment insurance and job turnover in Spain (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pab:wpaper:10.08

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