Duration and Recurrence of Unemployment Benefits

Using administrative data for the period 2005–2010, we test for the existence of segmentation in the pool of the unemployed receiving benefits and investigate the factors associated with the duration and recurrence of the receipt of unemployment benefits in Spain. The results suggest the existence of (at least) three groups of individuals, each with different combinations of covered unemployment duration and recurrence. We also find that the impact of the employment crisis has been an increase in the average length of time spent receiving unemployment benefits and the recurrence. Our findings support the hypothesis that not only the heterogeneity but also the previous experience of receipt increase the expected duration of subsequent benefit periods.