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Exits from unemployment: Recall or new job
Institution:1. Universidad Carlos III de Madrid, Departamento de Economía, C/Madrid, 126. 28903 Getafe, Madrid, Spain;2. Universidad de Alcalá, Departamento de Estadística, Estructura Económica y OEI, Plaza de la Victoria 3, 28803 Alcalá de Henares, Madrid, Spain;3. Universidad Carlos III de Madrid, Sección de Organización de Empresas, C/Madrid, 126. 28903 Getafe, Madrid, Spain;1. Grupo Interdisciplinar de Sistemas Complejos (GISC), Spain;2. Department d'' Enginyeria Informàtica i Matemàtiques, Universitat Rovira i Virgili, 43007 Tarragona, Catalonia, Spain;3. Centro de Astrobiología, INTA-CSIC, 28850 Torrejón de Ardoz, Madrid, Spain;4. IPHES (COMPATHEVOL), Institut Catala de Paleoecologia Humana i Evolucio Social, Universitat Rovira i Virgili, 43007 Tarragona, Catalonia, Spain;5. Institució Catalana de Recerca i Estudis Avançats (ICREA), 08010 Barcelona, Catalonia, Spain;6. Department d'' Enginyeria Química, Universitat Rovira i Virgili, 43007 Tarragona, Catalonia, Spain;1. Instituto de Ciencias Matemáticas (ICMAT) and Departamento de Matemáticas, Universidad Carlos III de Madrid, 28911 Leganés, Spain;2. Departamento de Matemática Aplicada, IBILCE, UNESP – Universidade Estadual Paulista, 15054-000 São José do Rio Preto, SP, Brazil;1. Department of Economics, Vrije Universiteit Amsterdam and Tinbergen Institute, Vrije Universiteit Amsterdam, De Boelelaan 1105, 1081 HV Amsterdam, Netherlands;2. University of Groningen, CESifo, CEPR, Netherlands;3. The Public-Private Sector Research Center at IESE, Barcelona, Spain
Abstract:This paper studies transitions out of unemployment in Spain distinguishing between recall to the same employer and reemployment in a new job. We use a large sample of newly unemployed workers obtained from Social Security records for Spain. These data contain information about each individual's employer identity before and after the unemployment spell. A discrete-time duration model with competing risks of exits serves us to investigate the factors that influence the probabilities of leaving unemployment to return to the same employer or to find a new job with a different employer. We find that taking into account the route to exit unemployment helps us to understand the influence of individual and job characteristics on the hazard rate. Moreover, the recall hazard rate exhibits no duration dependence, whereas the new-job hazard rate presents positive duration dependence.
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