Six Ways to Leave Unemployment

27 Pages Posted: 4 Aug 2008

See all articles by John T. Addison

John T. Addison

University of South Carolina - Moore School of Business - Department of Economics; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper


This paper uses a unique Portuguese dataset to examine the effect of access to unemployment benefits (UBs) and their maximum potential duration on escape rates from unemployment. In examining the time profile of transitions out of unemployment, the principal contributions of the paper are twofold. First, it provides a detailed state space of potential outcomes: open-ended employment, fixed-term contracts, part-time work, government-provided jobs, self employment, and labour force withdrawal. Second, it is able to exploit major exogenous discontinuities in the maximum duration of unemployment benefits to identify disincentive effects. While confirming strong disincentive effects, it is shown that use of an aggregate hazard function regression model compounds very different and even contradictory effects of the determinants of unemployment.

Suggested Citation

Addison, John T., Six Ways to Leave Unemployment. Scottish Journal of Political Economy, Vol. 55, Issue 4, pp. 393-419, September 2008. Available at SSRN: or

John T. Addison

University of South Carolina - Moore School of Business - Department of Economics ( email )

The Francis M. Hipp Building
1705 College Street
Columbia, SC 29208
United States
803-777-7400 (Phone)
803-777-6876 (Fax)


IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072

Register to save articles to
your library


Paper statistics

Abstract Views
PlumX Metrics