Measuring the effect of spell recurrence on poverty dynamics

The analysis of poverty dynamics yields important insights about the expected effectiveness of alternative social policies on poverty reduction. This paper analyses the effect of spell recurrence on poverty dynamics taking into account multiple poverty and non-poverty spells by spell order. Using data for Spain during a seven year period, we obtain that the poverty exit and re-entry rates vary not only with personal or household characteristics but also with spell accumulation and with the duration of past spells. Results indicate that the effect of duration dependence is significant and turns out to be different by spell order

Measuring the Effect of Spell Recurrence on Poverty Dynamics

The analysis of poverty dynamics yields important insights about the expected effectiveness of alternative social policies on poverty reduction. This paper analyses the effect of spell recurrence on poverty dynamics taking into account multiple poverty and non-poverty spells. Using longitudinal data for Spain we obtain that the poverty exit and re-entry rates vary not only with personal or household characteristics but also with spell accumulation and with the duration of past spells. Results indicate that the effect of duration dependence is significant and turns out to be different by spell order. Our findings support progress towards incorporating full individual poverty trajectories more explicitly in estimating the likelihood of future poverty

Measuring the effect of spell recurrence on poverty dynamics

The analysis of poverty dynamics yields important insights about the expected effectiveness of alternative social policies on poverty reduction. This paper analyses the effect of spell recurrence on poverty dynamics taking into account multiple poverty and non-poverty spells by spell order. Using data for Spain during a seven year period, we obtain that the poverty exit and re-entry rates vary not only with personal or household characteristics but also with spell accumulation and with the duration of past spells. Results indicate that the effect of duration dependence is significant and turns out to be different by spell order

Measuring the Effect of Spell Recurrence on Poverty Dynamics

The analysis of poverty dynamics yields important insights about the expected effectiveness of alternative social policies on poverty reduction. This paper analyses the effect of spell recurrence on poverty dynamics taking into account multiple poverty and non-poverty spells. Using longitudinal data for Spain we obtain that the poverty exit and re-entry rates vary not only with personal or household characteristics but also with spell accumulation and with the duration of past spells. Results indicate that the effect of duration dependence is significant and turns out to be different by spell order. Our findings support progress towards incorporating full individual poverty trajectories more explicitly in estimating the likelihood of future poverty

The influence of previous labour market experiences on subsequent job tenure

The aim of this paper is to analyse the influence of individual’s previous labour market experiences on the duration of subsequent job matches in the Spanish labour market. The study draws on a sample of workers extracted from a Spanish administrative dataset. We find evidence on the existence of a scarring effect: the longer the time spent in non-employment since previous job separation, the shorter the duration of subsequent re-employment relationships. Other result is that workers whose previous job match terminated due to the ending of a temporary contract are very likely to come back to employment under another temporary job and have a higher probability of job termination. The exhaustion of unemployment benefits also seems to exert a scarring effect on job duration

Assistance benefits and unemployment outflows of the elderly unemployed: The impact of a law change

This article examines the impact of a law change in benefit rules on the exit of older workers out of the unemployment benefits system. This change occurred in Spain in July 2012, when the age to become eligible for an unlimited unemployment assistance benefit was raised from 52 to 55, reducing the entitlement period to three years for the group of individuals aged 52–54 years who exhausted their unemployment insurance benefits, providing an ideal setting for a quasi-experimental evaluation. Using data from the Spanish Public Employment Service and the recipients aged 55–57 as a control group, we find that the probability of exiting from unemployment to a job for treated individuals who stopped having access to those benefits after the policy change took place increased substantially, thus reducing the expected duration of benefits recipiency. The estimated fiscal impact of this law change was a saving of around €600 million on the benefits budget

Non-employment and subsequent wage losses

This work is the first attempt to analyse the existence and the magnitude of wage penalties associated with the non-employment experience of individuals in the Spanish labour market. For that, we draw on a sample of Spanish workers across the period 1987-1997 with information coming from an administrative. We find that non-employment brings an earnings set-back but subsequent employment generates substantial recovery. In particular, the impact of past non-employment duration increases with the time spent since previous job separation, individuals with few job interruptions present the shortest wage penalty effect and certain groups of workers (those aged more than 45 years, those laid off, and those in blue collar occupations) suffer larger wage penalties upon re-employment

Non-employment and subsequent wage losses

This work is the first attempt to analyse the existence and the magnitude of wage penalties associated with the non-employment experience of individuals in the Spanish labour market. For that, we draw on a sample of Spanish workers across the period 1987-1997 with information coming from an administrative. We find that non-employment brings an earnings set-back but subsequent employment generates substantial recovery. In particular, the impact of past non-employment duration increases with the time spent since previous job separation, individuals with few job interruptions present the shortest wage penalty effect and certain groups of workers (those aged more than 45 years, those laid off, and those in blue collar occupations) suffer larger wage penalties upon re-employment

The influence of previous labour market experiences on subsequent job tenure

The aim of this paper is to analyse the influence of individual’s previous labour market experiences on the duration of subsequent job matches in the Spanish labour market. The study draws on a sample of workers extracted from a Spanish administrative dataset. We find evidence on the existence of a scarring effect: the longer the time spent in non-employment since previous job separation, the shorter the duration of subsequent re-employment relationships. Other result is that workers whose previous job match terminated due to the ending of a temporary contract are very likely to come back to employment under another temporary job and have a higher probability of job termination. The exhaustion of unemployment benefits also seems to exert a scarring effect on job duration

Duration and recurrence in unemployment benefits

Using administrative data for the period 2005-2010, we investigate duration and recurrence in unemployment benefits in Spain. The results suggest the existence of (at least) three groups of individuals, each one with different combinations of covered unemployment duration and recurrence. We also find that the impact of the economic crisis has been to increase the duration and the recurrence in unemployment benefits. Our findings support the hypothesis that not only the heterogeneity but also the previous experience of unemployment benefit increase the expected duration in subsequent benefit periods