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| Author: | Bover, O. Arellano, M. Bentolila, S. |
| Title: | Unemployment duration, benefit duration and the business cycle |
| Journal: | Economic Journal
2002 : APR, VOL.112:479, p. 223-265 |
| Index terms: | Unemployment Business cycles Labour stability |
| Language: | eng |
| Abstract: | The authors study the effects of unemployment benefit duration and the business cycle on unemployment duration. They construct durations for individuals entering unemployment from a longitudinal sample of Spanish men in 1987-94. Estimated discrete hazard models indicate that receipt of unemployment benefits reduces the hazard of leaving unemployment. At durations of three months, when the largest effects occur, the hazard for workers without benefits is twice as large as that for workers with benefits. Favourable business conditions increase the hazard of leaving unemployment. At sample-period magnitudes, this effect is significantly smaller than that of benefit receipt. |
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