The Relationship between Unemployment Benefits and Re-Employment Probabilities: Evidence from Spain

22 Pages Posted: 20 May 2004

See all articles by Stephen P. Jenkins

Stephen P. Jenkins

London School of Economics & Political Science (LSE) - Department of Social Policy and Administration; Institute for the Study of Labor (IZA); University of Essex - Institute for Social and Economic Research (ISER)

Carlos García Serrano

Universidad de Alcala de Henares

Abstract

We provide the first Spanish evidence about the effects on re-employment probabilities of variations in benefit levels and time-to-exhaustion. Increases in unemployment insurance (UI) benefit levels had a small disincentive effect on the re-employment hazard on average. Around this average, there were larger disincentive effects for men with elapsed durations between 4 and 18-months, whereas for men unemployed longer than 18-months, or for men resident in the south, the effect was negligible. Re-employment hazards increased when UI exhaustion was imminent, but the change was small. Extensions to unemployment assistance eligibility in 1989 for men aged 45+ years lowered re-employment probabilities.

Suggested Citation

Jenkins, Stephen P. and García Serrano, Carlos, The Relationship between Unemployment Benefits and Re-Employment Probabilities: Evidence from Spain. Available at SSRN: https://ssrn.com/abstract=526858

Stephen P. Jenkins (Contact Author)

London School of Economics & Political Science (LSE) - Department of Social Policy and Administration ( email )

Houghton Street
London, England WC2A 2AE
United Kingdom

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

University of Essex - Institute for Social and Economic Research (ISER) ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom
+44 120 687 3374 (Phone)
+44 120 687 3151 (Fax)

Carlos García Serrano

Universidad de Alcala de Henares ( email )

Plaza de San Diego s/n
E-28801 Madrid
Spain
+34 91 885 4263 (Phone)
+34 91 885 4239 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
16
Abstract Views
1,320
PlumX Metrics