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Are the Spanish Long-Term Unemployed Unemployable?

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dc.affiliation.dptoUC3M. Departamento de Economíaes
dc.contributor.authorBentolila, Samuel
dc.contributor.authorGarcía-Pérez, J. Ignacio
dc.contributor.authorJansen, Marcel
dc.contributor.editorUniversidad Carlos III de Madrid. Departamento de Economíaes
dc.contributor.otheres
dc.date.accessioned2017-02-06T15:33:51Z
dc.date.available2017-02-06T15:33:51Z
dc.date.issued2017-01
dc.description.abstractLong-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-ofthe- 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 skills 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 labour market policies should play a more prominent role in the fight against long-term unemployment while early activation should be used to curb inflows.en
dc.description.sponsorshipThis is a revised version of the Presidential Address of the 40th Simposio de la Asociación Española de Economía delivered by the first author in Girona (December 2015). We are grateful to Manuel Arellano, Rolf Campos, Mario Izquierdo, Ernesto Villanueva, and seminar participants at the Banco de España, the European Central Bank, the International Labor Office, and the University of Edinburgh for comments, to Yolanda Rebollo- Sanz for help with the data set, and to Lucía Gorjón and Ingeborg Kukla for excellent research assistance. Bentolila thanks the Economics Department of Universidad Carlos III de Madrid for their hospitality. García-Pérez and Jansen gratefully acknowledge financial support from MINECO/FEDER (grants ECO2015-65408-R and ECO2015-69631-P).en
dc.format.mimetypeapplication/pdf
dc.identifier.issn2340-5031es
dc.identifier.urihttps://hdl.handle.net/10016/24122
dc.identifier.uxxiDT/0000001507es
dc.language.isoenges
dc.relation.ispartofseriesUC3M working papers. Economicsen
dc.relation.ispartofseries17-04es
dc.relation.projectIDGobierno de España. ECO2015-65408-Res
dc.relation.projectIDGobierno de España. ECO2015-69631-Pes
dc.rightsAtribución-NoComercial-SinDerivadas 3.0 España*
dc.rights.accessRightsopen accessen
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/es/*
dc.subject.jelJ63es
dc.subject.jelJ64es
dc.subject.jelJ65es
dc.subject.jelC41es
dc.subject.otherLong-term unemploymenten
dc.subject.othergreat recessionen
dc.subject.otherduration modelen
dc.subject.othersurvival probabilityen
dc.subject.otherSpainen
dc.titleAre the Spanish Long-Term Unemployed Unemployable?en
dc.typeworking paper*
dc.type.hasVersionAO*
dspace.entity.typePublication
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