RT Generic
T1 Jobfinding and wages when longrun unemployment is really long : the case of Spain
A1 Alba, Alfonso
A1 Freeman, Richard B.
A2 National Bureau of Economic Research, 
AB This paper uses the "Encuesta de Condiciones de Vida Y Trabajoll (ECVT)··a survey of the labor force activity of over 61,000 persons in Spain in 1985when unemployment exceeded 20%--to examine the effect of unemployrnent insurance (UI) and family status on longrun joblessness. It finds that (1)duratían of joblessness 1s 50me 30% longer for those eligible for UI benefits than for those ineligible for UI; (2) the longterm unemployed aredisproportionately secondary workers for whom the family serves as a form ofwelfare; (3) hazard rates linking the chances of jobfinding to duration ofunemployment in the 1981-85 period of massive joblessness did not declinewith duration; (4) the length of unemployment spells reduces wages moderatelybut has huge effect on the probability that re-employed workers takesecondary sector jobs; (5) the UI eligible earn more and are more likely togain regular full-time jobs than those ineligible for UI, congruent with theadditional months of Job search associated with UI.The estimated effects of duratían on the hazard and on earnings areconsistent with the implications of labor supply and search analysis but notwith the view that long unemployment spells create a class of unemployables.Our results imply a sizeable reduction in longterm unemployment with economicrecovery.
YR 1990
FD 1990-08
LK https://hdl.handle.net/10016/4591
UL https://hdl.handle.net/10016/4591
LA eng
DS e-Archivo
RD 19 may. 2024