This article studies transitions out of unemployment for benefit recipients
in Spain. We analyse the duration of unemployment, distinguishing
between spells that end in recall (workers returning to the previous
employer) and spells that end in exit to a newThis article studies transitions out of unemployment for benefit recipients
in Spain. We analyse the duration of unemployment, distinguishing
between spells that end in recall (workers returning to the previous
employer) and spells that end in exit to a new job. This distinction allows
us to find that the recall hazard rate increases around the time of
exhaustion of benefits. However, this happens only for workers receiving
Unemployment Insurance (UI). Because we are unable to replicate this
result for workers receiving Unemployment Assistance (UA), we believe
the finding lends support to the hypothesis that in Spain firms and workers
make a strategic use of UI[+][-]