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Unemployment benefits and recall jobs: a split population model

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  • José María Arranz
  • Fernando Muñoz-Bullón

Abstract

We study the transitions out of unemployment of the recipients of insurance benefits, focusing on whether or not they are recalled to their previous employment. Specifically, a split population duration model (SPDM) for the recall decision by employers is compared with a standard duration model (SDM). We find significant differences between the SPDM and the SDM estimates, both with regard to their magnitude and expected sign. Some of the variables record undervalued estimated hazard rates in the SDM with respect to the SPDM.

Suggested Citation

  • José María Arranz & Fernando Muñoz-Bullón, 2016. "Unemployment benefits and recall jobs: a split population model," Applied Economics Letters, Taylor & Francis Journals, vol. 23(13), pages 940-944, September.
    • Handle: RePEc:taf:apeclt:v:23:y:2016:i:13:p:940-944
    DOI: 10.1080/13504851.2015.1122726
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