Are the Spanish long-term unemployed unemployable? / Samuel Bentolila (CEMFI), J. Ignacio García-Pérez (Universidad Pablo de Olavide and Fedea), Marcel Jansen (Universidad Autónoma de Madrid, IZA and Fedea) ; IZA, Institute of Labor Economics
VerfasserBentolila, Samuel In der Gemeinsamen Normdatei der DNB nachschlagen ; García Peréz, José Ignacio In der Gemeinsamen Normdatei der DNB nachschlagen ; Jansen, Marcel In der Gemeinsamen Normdatei der DNB nachschlagen
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenBonn, Germany : IZA Institute of Labor Economics, February 2017
Elektronische Ressource
Umfang1 Online-Ressource (46 Seiten) : Diagramme
SerieDiscussion paper ; no. 10580
URNurn:nbn:de:hbz:5:2-113309 Persistent Identifier (URN)
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Are the Spanish long-term unemployed unemployable? [1.51 mb]
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Long-term unemployment reached unprecedented levels in Spain in the wake of the Great Recession and it still affects around 57% of the unemployed. We document the sources that contributed to the rise in long-term unemployment and analyze its persistence using state-of-the-art duration models. We find pervasive evidence of negative duration dependence, while personal characteristics such as mature age, lack of experience, and entitlement to unemployment benefits are key to understand the cross-sectional differences in the incidence of long-term unemployment. The negative impact of low levels of skill and education is muted by the large share of temporary contracts, but once we restrict attention to employment spells lasting at least one month these factors also contribute to a higher risk of long-term unemployment. Surprisingly, workers from the construction sector do not fare worse than similar workers from other sectors. Finally, self-reported reservation wages are found to respond strongly to the cycle, but much less to individual unemployment duration. In view of these findings, we argue that active labor market policies should play a more prominent role in the fight against long-term unemployment while early activation should be used to curb inflows.