Unemployment Insurance And Job Turnover In Spain

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The aim of this paper is to shed some light on the potential relationships between the unemployment insurance system and the labour market turnover trying to move further the traditional view that this system has only behavioral consequences from the labour supply side of the labour market. This paper assumes heterogeneity in the impact of the incentives embedded in the unemployment insurance system, depending on the type of labour market transition (quits versus layoffs and recalls versus new job entrances) and the worker's attachment to the labour market (gender and type of contract). The results show that unemployment benefits appear to favour job turnover and firms and workers?s decisions seem to matter on job turnover.