Unemployment Duration, Benefit Duration and the Business Cycle

By O. Bover, M. Arellano, S. Bentolila. 2002

318 citations recorded by the source corpus.

In this paper, we study the effects of unemployment benefit duration and the business cycle on unemployment duration. We construct durations for individuals entering unemployment from a longitudinal sample of Spanish men in 1987–94. Estimated discrete hazard models indicate that receipt of unemployment benefits significantly reduces the hazard of leaving unemployment. For instance, at durations of three months, the hazard for workers without benefits is twice as large as that for workers with benefits. Favourable business conditions increase the hazard of leaving unemployment. At sample-period magnitudes, this effect is significantly smaller than that of benefit receipt.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/e8080a48c6da57e2da5ac63d82577eeb526771f2

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Citations in the corpus

Unemployment and Vacancy Fluctuations in the Matching Model: Inspecting the Mechanism (2005, background): “Bover, Arellano, and Bentolila (2002) find for Spain that not receiving benefits increases the hazard rate at most by 10 percent, implying a local elasticity of 0.1.”
Benefit Entitlement and Unemployment Duration: The Role of Policy Endogeneity (2004, background): “…on the importance of benefit eligibility compare between receivers and non-receivers of unemployment benefits (Carling et al., 1996 for Sweden and Bover et al., 1998 for Spain); or study major cuts in benefits (e.g. Carling et al., 2001 look at a major benefit cut in Sweden and Abbring et al.,…”
Why Deregulate Labour Markets (2000, unknown): “Using the matched LFS records, Bover et al. (1996) have found a negative effect of unemployment benefits on the rate of exit from unemployment; an effect which was particularly significant at short durations of unemployment—the maximum was observed at 3 months and faded away after 10…”
Binary choice panel data models with predetermined variables (2003, background): “…heterogeneity, so that the maximizers of the ÿve likelihood functions are consistent estimates of the same parameters (a description of the design 11 A discussion of this problem in the context of a duration model with predetermined time-varying covariates can be found in Bover et al. (2002).”
Unemployment Insurance in Europe: Unemployment Duration and Subsequent Employment Stability (2009, unknown): “Following Narendranathan and Stewart (1993), Sueyoshi (1995), Jenkins (1995) and Bover et al. (2002), this likelihood can be written in the form of a standard log-likelihood function for binary variables.”
Spanish Unemployment: The End of the Wild Ride? (2003, methodology): “It was implemented through 7See Bover et al. (2000) for details.”
LABOR CONTRACTS AND FLEXIBILITY: EVIDENCE FROM A LABOR MARKET REFORM IN SPAIN (2014, unknown): “Cabrales and Hopenhayn (1997) calibrate a similar model using firm-level evidence on job matches before and after the 1984 reform in Spain which allowed the widespread use of temporary contracts, finding that the reform has induced a large increase in the turnover rate but a moderate effect on emplo”
Does Unemployment Compensation Affect Unemployment Duration (2003, unknown): “Hence our results do not confirm existing evidence at this point (Nickell, 1979; Fallick, 1991; Narendranathan, 1993; Narendranathan and Stewart, 1993; Arulampalam and Stewart, 1995; Bover et al., 1998; Jenkins and Garcı́a-Serano, 2000), which indicates a rapidly declining effect of unemployment inc”