Six ways to leave unemployment

Pedro Portugal, John T. Addison

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)


This paper uses a unique Portuguese dataset to examine the effect of access to unemployment benefits (UBs) and their maximum potential duration on escape rates from unemployment. In examining the time profile of transitions out of unemployment, the principal contributions of the paper are twofold. First, it provides a detailed state space of potential outcomes: open-ended employment, fixed-term contracts, part-time work, government-provided jobs, self employment, and labour force withdrawal. Second, it is able to exploit major exogenous discontinuities in the maximum duration of unemployment benefits to identify disincentive effects. While confirming strong disincentive effects, it is shown that use of an aggregate hazard function regression model compounds very different and even contradictory effects of the determinants of unemployment.

Original languageEnglish
Pages (from-to)393-419
Number of pages27
JournalScottish Journal of Political Economy
Issue number4
Publication statusPublished - Sept 2008


  • Competing risks
  • Unemployment benefits
  • Unemployment duration


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