1,741 research outputs found
Unemployment duration among immigrants and natives: unobserved heterogeneity in a multi-spell duration model
This paper studies whether the unemployment dynamics of immigrants differ from those of
natives, paying special attention to the impact of accounting for unobserved heterogeneity
among individuals. Using a large administrative data set for Spain, we estimate multiple-spell
discrete duration models which disentangle unobserved heterogeneity from duration
dependence. Specifically, we estimate random effects models assuming that the distribution of
the effects is discrete with finite support, and fixed effects models in which the distribution of the
unobserved effects is left unrestricted. Our results show the importance of accounting for
unobserved heterogeneity and that mistaken policy implications can be derived due to improper
treatment of unmeasured variables. We find that lack of control for unobserved heterogeneity
leads to the conclusion that immigrant males have a higher probability of leaving unemployment
than natives and that the negative effect of unemployment benefits for immigrants lasts longer
than for natives. Nonetheless, the estimates which do control for unobserved heterogeneity
show the opposite results
Temporary help agencies and occupational mobility
This paper focuses upon the effect of Temporary Help Agencies (THAs) on occupational mobility through a comparison of the job-to-job upgrading chances of THA and non-THA workers. A screening approach to the role of these labor "brokers" suggests that agency workers can expect greater upgrading chances between two different occupations. Results obtained from a sample of Spanish workers show that working through these intermediaries allows workers in intermediate occupational levels to avoid occupational demotions more easily than non-THA ones. Moreover, THAs improve the probability for high-skilled workers of achieving a permanent contract. The empirical analysis demonstrates that the existence of self-selection is an important explanation for increased occupational mobility among THA workers in Spain
The nineties in Spain: too much flexibility in the youth labour market?
This paper examines movements into and out of employment in the Spanish youth labour market throughout the nineties. We analyze how differences in personal and economic circumstances influence such movements. In addition, we consider the importance of duration dependence in determining them. Our main findings are that: (i) Very young workers, women and those with lower qualification levels are more likely to be affected by high labour turnover; (ii) The existence of unobserved heterogeneity has important consequences in the unemployment hazard rate; (iii) In the 90's, employment hazard rates were substantially affected by the extensive use of fixed-term contracts, although the 1997 labour market reform seems to have reduced this hazard rate; (iv) The intervention of temporary help agencies has a positive impact on the likelihood of leaving unemployment, although only for short-term unemployed individuals; at the same time, however, the employment hazard rate is substantially higher within these agencies
Unemployment duration among immigrants and natives: unobserved heterogeneity in a multi-spell duration model
This paper studies whether the unemployment dynamics of immigrants differ from those of natives, paying special attention to the impact of accounting for unobserved heterogeneity among individuals. Using a large administrative data set for Spain, we estimate multiple-spell discrete duration models which disentangle unobserved heterogeneity from duration dependence. Specifically, we estimate random effects models assuming that the distribution of the effects is discrete with finite support, and fixed effects models in which the distribution of the unobserved effects is left unrestricted. Our results show the importance of accounting for unobserved heterogeneity and that mistaken policy implications can be derived due to improper treatment of unmeasured variables. We find that lack of control for unobserved heterogeneity leads to the conclusion that immigrant males have a higher probability of leaving unemployment than natives and that the negative effect of unemployment benefits for immigrants lasts longer than for natives. Nonetheless, the estimates which do control for unobserved heterogeneity show the opposite results.Duration models, Discrete choice, Multiple spells, Unobserved heterogeneity, Unemployment, Immigration
Are temporary help agencies changing mobility patterns in the Spanish labour market?
This paper examines to what extent Temporary Help Agency intermediation in the labour market affects workers' transitions into and out of employment in the Spanish youth labour market throughout the nineties. Results obtained show that this intermediation presents a positive impact on the likelihood of leaving unemployment, although only for short-term unemployed individuals; at the same time, however, the employment hazard rate is substantially higher for agency workers. We also find that employment hazard rates were substantially affected in the 90's by the extensive use of fixed-term contracts, although the 1997 labour market reform is found to reduce this hazard rate. Finally, very young workers, women and those with lower qualification levels are more likely to be affected by higher labour turnover
Transitions into permanent employment in Spain : an empirical analysis for young workers
We analyze the Spanish temporary workersâ transitions into permanent employment and
to what extent those who become unemployed are able to achieve a permanent job. Our
focus is placed on the role of the individualâs sequence of temporary contracts on the
probability of moving from temporary into permanent employment. We apply multiplespell
duration techniques to a longitudinal dataset of temporary workers obtained from
Social Security records for the period 1996-2003. We basically find that even though
transitions into permanent employment increase with tenure, temporary jobs do not
constitute stepping stones towards permanent employment, since the probability of
obtaining a permanent job decreases with repeated temporary jobs. Results also show
that individuals with high duration of unemployment flow into permanent work less
frequently
Unemployment duration and workers' wage aspirations in Spain
This paper examines unemployed workers' declared willingness to work for a wage lower than the one warranted by their qualification. We analyze which personal and economic characteristics determine this willingness and how it changes as unemployment spells lengthen. Moreover, we also study the influence of this willingness on unemployment duration. The main results are: (i) Young workers, those less educated and those living in regions with high unemployment show a more positive attitude towards accepting lower wages while married women with a working husband show more negative attitudes; (ii) The exhaustion of unemployment benefits has positive effects in the transition probability of the attitude from negative to positive; (iii) The effect of this attitude on the unemployment hazard rate is positive but only marginally significant which may be showing that this willingness is not only reflecting the worker's reservation wage but also some unobserved heterogeneity; (iv) The negative duration dependence of the unemployment hazard rate is substantially reduced when unobserved heterogeneity is controlled for.Willingness to work for lower wages, reservation wage, unemployment duration, unobserved heterogeneity
Temporary help agencies and workers' occupational mobility
This paper focuses on the occupational mobility of temporary help agency workers by studying their job-to-job upgrading chances as opposed to those who have not been hired through these intermediaries. A screening approach to the role of those labor âbrokersâ suggests that agency workers may expect greater chances of upgrading from one occupation to another. Results obtained with a sample of Spanish workers show that working through those intermediaries comparatively offers stronger prospects of occupational upgrading for workers of a medium qualification level. This basic result is reinforced when the existence of self-selection into this type of intermediated work is appropriately taken into account.Temporary help agencies, screening, self-selection, switching models
Do wage subsidies affect the subsequent employment stability of permanent workers?: the case of Spain
This article studies how job creation subsidies designed for several Spanish regional governments to foster the creation of new permanent contracts during the period 1997-2004 might affect the subsequent employment stability of the eligible workers. We use a triple difference approach that focuses on regional and temporal variability in individual eligibility conditions of these subsidies to obtain the causal effect of the policy. Our data comes from the Muestra Continua de Vidas Laborales (MCVL) and from a database that contains information on the policy analyzed. Our main result is that workers who are eligible for these subsidies face a higher probability of exiting from their current permanent contract than those who do not. These effects vary by age and gender, as well as by contract duration and contract type. This result is particularly relevant for male workers whose contracts also benefited with nationally subsidized payroll deductions and for women with such deductions but only during their first year of employment. During that initial first-year period, the exit rate among eligible workers in our sample increased by 9%, 21% and 16% for younger, middle-aged and older female workers, respectively, and by about 13% and 25% for younger and older male workers, respectively.labour market rotation, permanent contracts, wage subsidies, triple difference, causal inference, average treatment effects, duration model.
TEMPORARY HELP AGENCIES AND OCCUPATIONAL MOBILITY
This paper focuses upon the effect of Temporary Help Agencies (THAs) on occupational mobility through a comparison of the job-to-job upgrading chances of THA and non-THA workers. A screening approach to the role of these labor âbrokersâ suggests that agency workers can expect greater upgrading chances between two different occupations. Results obtained from a sample of Spanish workers show that working through these intermediaries allows workers in intermediate occupational levels to avoid occupational demotions more easily than non-THA ones. Moreover, THAs improve the probability for high-skilled workers of achieving a permanent contract. The empirical analysis demonstrates that the existence of self-selection is an important explanation for increased occupational mobility among THA workers in Spain.
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