Explaining the trasitions out of unemployement in Spain : the effect of unemployement insurance

In this article we study the factors that affect the transitions out of unemployment in Spain. We pay special attention to the impact of unemployment insurance benefits on the re-employment probability. We use a multinomiallogit model, and data from the EPA matched files from the second quarter of 1987 to the fourth quarter of 1995. Consistent with previous work, we find a negative effect of unemployment insurance receipt on the re-employment probability, and on withdrawal from the labor force. More importantly, we find a differential effect of benefit receipt when comparing time periods before and afier 1992. In april of that year the labor authority made eligibility requirements for unemployment insurance more restrictive, and curtailed benefit amounts

Mismatch in the Spanish labor market : overeducation?

The objective of this artide is to explain the job match, which is assessed by comparing attained education and job-required education as reported by workers . We frame our empirical work according to the occupational mobility theory. Using a cross-section of workers from a representative survey of the Spanish labor force , we consider overeducated workers to be those who report that the level of education their jobs require is below the level of education they have attained. Our results indicate that overeducated workers have less experience, decreased on-thejob training and higher turno ver than other comparable workers. We also observe an improvement in the job match over age and mobility.Publicad

Self-employment in the midst of unemployment : the cases of Spain and the United States

This article examines the relationship between unemployment and selfemployment. The empirical work is framed by a job search model with learning, where self-employment is an alternative for jobless workers. Consistent with the model's prediction, we find that for both spain and the United States, duration of unemployment significantly increases the probability of becoming self-employed. Further analysis showed that part-time work and the absence of Social Security coverage are more likely to be aseociated with self-employed workers. We also find that, in Spain, those self-employed who do not hire any persone earn eignificantly less than other comparable worker

Labor market effects of fixed-term employment contracts in Spain

This article studies the labor market effects of flxed-term employment contracts in Spain. First, we present various relevant features of the institutional setting which gave rise to and resulted from the introduction of fixed-term contracts. Second, we look at the evolution of temporary and permanent employment over the period 1987-1995 for which data are available. Then we discuss the implications of the distinction between temporary and permanent in the employment relationship for labor market outcomes in Spain. Third, we undertake the empírical analysis, which is aimed al knowing who are the workers under flxed-term contracts, how much they earn as compared to permanent workers, and how likely they are to obtain an indeflnite employment relationship. We find that non household heads, youth, less educated workers, women and private sector employees are over-represented among the temporary workers. These workers earn signiflcantly less than those with indefmite contracts, and their transition rates from temporary into indefmite employment status appears quite low, having fallen signiflcantly over fue period 1987-1995

Re-employment probabilities of young workers in Spain

We use matched .fi,les of the Labour Force Survey (EPA) for the period 1987- 1996 to study the re-employment probabilities of workers aged 16-29 in Spain. The sample is restricted to men and women who posses work experience. A discrete hazard rate model, assuming competing risks, allows us to investigate the factors that affect the probability of leaving unemployment for becoming either employed or inactive. In addition to a set of explanatory variables related to personal and previous job characteristics, we include year dummies to control for the effects of the economic cycle and other relevant factors that may have changed over the period of study. As an alternative measure for the business cycle, GDP growth is used. Duration dependence is incorporated in the model in a flexible way by including quarterly dummies.En este artículo se utilizan los ficheros enlazados de la Encuesta de Población Activa (EPA) del periodo 1987-1996 para estudiar las tasas de salida del paro entre trabajadores de 16 a 29 años de edad. La muestra está restringida a varones y a mujeres que han trabajado alguna vez. Para el análisis se usa un modelo de duración discreta que admite dos vías alternativas de salida del paro: hacia el empleo o hacia la inactividad. Además de variables demográficas y otras relacionadas con el empleo anterior, en las regresiones se incluyen variables .ficticias anuales para tener en cuenta el efecto del ciclo económico y de otros factores que podrían haber cambiado a lo largo del periodo de estudio. Como una medida alternativa del ciclo económico se utiliza el crecimiento del PIB. La posible variación de la tasa de salida a lo largo de la duración del desempleo se incorpora en el modelo de manera flexible mediante la inclusión de variables ficticias trimestrales.Publicad

Formal training, temporary contracts, productivity and wages in Spain

The definitive version is available at www.blackwell-synergy.comThe author gratefully acknowledges a grant from the Spanish Ministry of Education and Science, in cooperation with the Fulbright Commission, during the second year of his PostDoctoral Fellowship at Harvard University and the National Bureau of Economic ResearchPublicad

Employment transitions of young workers in Spain

In this article, we study the youth labour market in Spain. We focus on the transition from unemployment to employment and out of the labour force among two groups of workers: those who are looking for the first job, and workers who have already acquired sorne work experience. According to the Spanísh labour force survey (EPA), fírst job seekers represent more than fífty per cent of youth unemployment. By using matched files from the same data source we find that the employment transition rate among first job seekers is half of that for experienced young workers. Applying a multinomiallogit, we have analysed the factors that determine labour market transitions, and found significant differences between the two groups of job seekers. Inclusion of year durnmies in the regressions allowed to control for the effects of the economic cycle on transition probabilities

Mismatch in the Spanish labor market : overeducation?

The objective of this article is to explain the job match which is assessed by comparing attained education and job-required education as reported by workers. We frame our empirical work according to the occupational mobility theory. Using a cross-section of workers from a representative survey of the Spanish labor force, we consider overeducated workers to be those who report that the level of education their jobs require is below the level of education they have attained. Our results indicate that overeducated workers have less experience, decreased on-the-job training and higher turnover than other comparable workers. We also observe an improvement in the job match over age and mobility

Fixed-Term employment contracts in Spain: Labor market flexibility or segmentation?.

In this article, we provide some insights into the labor market effects of fixed-term contracts in Spain. We use in our study the dual labor market theory and some tenets of efficiency wage models. First, we discuss various relevant implications of the introduction of fixed-term contracts for the Spanish labor market outcomes. Then, we undertake the empirical analysis. This has shown evidence of significant linkages between firms' use of fixed-term contracts and an increasing segmentation of the Spanish labor market. Specifically, firms seem to use the temporary employment relationship to screen workers, elicit greater efforts from them and optimize a core of employees. Our finding, that the use of fixed-term contracts is correlated with lower labor costs, indicates that a more efficient mechanism to recruit and allocate labor may be in place. To produce this outcome, wages need not be discriminated. The reason being that firms can assign heterogeneous workers to perform heterogeneous tasks. Moreover, primary sector jobs (permanent employment) are conveniently rationed by employers to facilitate labor adjustments and provide work incentives.Segmentation; Dual labor market; Fixed-term contracts; Primary sector; Secondary sector; Efficiency wages; Screening device;

Mismatch in the Spanish labor market : overeducation?.

The objective of this artide is to explain the job match, which is assessed by comparing attained education and job-required education as reported by workers . We frame our empirical work according to the occupational mobility theory. Using a cross-section of workers from a representative survey of the Spanish labor force , we consider overeducated workers to be those who report that the level of education their jobs require is below the level of education they have attained. Our results indicate that overeducated workers have less experience, decreased on-thejob training and higher turno ver than other comparable workers. We also observe an improvement in the job match over age and mobility.