Begoña Cueto

An analysis of self-employment subsidies with duration models

The determinants of continuity of subsidized self-employment activities are studied by means of duration models in Asturias (Spain). Variables related to socio-economic characteristics of the self-employed and to subsidized businesses are included in the models. Moreover, to consider the economic situation, the regional unemployment rate has been taken into account. A general survival analysis is complemented with a competing risk model that considers two types of exits from self-employment (failure versus other reasons). The significant variables that explain survival are age, industry, whether the business is the main source of family income or not and the unemployment rate.

The sustainability of start-up firms among formerly wage-employed workers

In this paper we study the survival of start-up firms among former wage workers in Spain. We use well-known duration model techniques in order to analyse the duration of their self-employment spells distinguishing between those that end in unemployment from those that end in exit to a new paid employment. We address the question of how long these workers remain self-employed before entering into unemployment or returning to paid employment. Our findings show that a higher survival rate in self-employment is associated with men, prime-age workers and individuals with higher previous labour turnover. Moreover, longer unemployment spells are found to speed up the rate of transition to unemployment and to reduce that to paid employment. Finally, the probability of exiting decreases with duration in self-employment, and women are more likely than men to become unemployed after a self-employment experience.

Entrepreneurship and unemployment in Spain: a regional analysis

Self-employment is usually associated with entrepreneurship and it is often promoted as a way of reducing unemployment. Our aim in this article is to analyse the relationship between self-employment and unemployment taking into account its spatial dimension. The entrepreneur activity in each region depends not only on its own endowment but the entrepreneurship environment may be exerted some influence. Regional Spanish data are used to obtain evidence about this relationship using a Spatial Durbin model to embed the spatial dimension. The results reveal that both the direct and indirect effects are relatively small. Further, if unemployment increases in a region, self-employment decreases. However, if unemployment grows in neighbouring regions, incentives for entering self-employment increase, implying that there is a ‘refugee’ effect (self-employment as an answer to the lack of wage employment).

Diferencias salariales por discapacidad y Centros Especiales de Empleo

En este articulo se estiman las diferencias salariales por discapacidad, atendiendo especialmente a las diferencias salariales existentes en los Centros Especiales de Empleo (CEE). Se encuentra que los trabajadores con discapacidad en un CEE ganan en torno a un 93% de lo que ganan en una empresa ordinaria. El 58% de esta diferencia salarial no es atribuible a diferencias en caracteristicas. Conforme crece la severidad de la discapacidad la parte no atribuible a caracteristicas disminuye, lo cual sugiere la existencia de discriminacion estadistica, tanto en CEE como en empresas ordinarias. El analisis esta basado en datos administrativos de la Seguridad Social.

Determinants of immigrant self-employment in Spain

Purpose - – The purpose of this paper is to examine immigrant self-employment in Spain. The study aims to determine the likelihood of immigrants being self-employed, the differences between Spaniards and immigrants in terms of self-employment and differences among immigrants from different regions of origin. Design/methodology/approach - – Data from the Labour Force Survey for 2005-2011 are used for a descriptive analysis of self-employment. Logit regressions allow us to study the determinants of immigrant self-employment. Findings - – Unlike research conducted in other countries, the rate of immigrant self-employment in Spain is lower than that of nationals, although differences exist according to the region of origin. Men and older individuals are more likely to be self-employed. Those with higher levels of education are also more likely to be self-employed – this may be attributable to the decreased availability of skilled positions for immigrants. Research limitations/implications - – The sample size does not allow for differential analyses regarding the region of origin or the existence and influence of enclaves. Practical implications - – Self-employment may be an opportunity for immigrants to improve their position in the labour market, especially in the case of highly skilled workers. Originality/value - – In Spain, analyses of immigrant self-employment are rare and generally focus on case studies. However, this study covers the whole population within a highly specific economic situation.

Fostering the Self-Employment in Spain: An Evaluation of the Capitalisation of Unemployment Benefits Programme

Self-employment has become an important source of employment in the last decades. Moreover governments have developed labour market programmes in order to foster self-employment. The capitalisation of unemployment benefits is a Spanish programme that gives the unemployed people the possibility to receive the contributory unemployment benefits in a lump sum payment in order to set up a business. Our analysis supports the existence of spatial spillovers in regional labour markets; consequently, the modelmust include this spatial process explicitly. The results suggest that the magnitude of the direct effect is smaller but it is in accordance with the expected, since the possibility of capitalisation of unemployment benefits is not the main reason to move into the self-employment.

¿Influye la pobreza en la juventud en la pobreza en la etapa adulta? Un análisis para España / Does Poverty on Youth Affect Poverty in Adulthood? An Analysis for Spain

espanolLa correlacion de los logros economicos, sociales y educativos entre generaciones de la misma familia es una cuestion de gran interes para el analisis de la igualdad de oportunidades en la sociedad. Nuestro objetivo en este articulo es cuantificar la incidencia e intensidad de la transmision intergeneracional de la pobreza en Espana. Con datos del modulo especifico sobre transmision intergeneracional de situaciones de dificultades economicas de la ECV 2011 se utiliza el propensity score matchingpara estudiar la relacion entre las dificultades economicas de una generacion y las de la siguiente. Los resultados muestran que haber tenido dificultades economicas durante la adolescencia aumenta la probabilidad de pobreza en la etapa adulta. Este impacto se ha reducido en las generaciones mas jovenes. EnglishThe correlation of economic, social and educational achievements between generations of the same family is a matter of great interest for the analysis of equal opportunities in society. The aim of this article is to quantify the impact and extent of the intergenerational transmission of poverty in Spain. Using data from the specific module on the intergenerational transmission of economic disadvantage in the 2011 Life Conditions Survey, propensity score matching was used to study the relationship between the economic disadvantage of one generation and the next. The results show that having economic disadvantage during adolescence increases the probability of poverty in adulthood. This impact has been reduced in younger generations.

Do Partial Disability Pensions Close the Earnings Gap

In this article, we estimate the total earnings losses of male workers with a partial disability, i.e., they are able to work at a different occupation after the disability’s onset. We use a Spanish administrative dataset (Muestra Continua de Vidas Laborales) from a specific partial disability pension scheme (Incapacidad Permanente Total). Using propensity score estimators combined with difference-in-differences, the estimation of the causal effect of the disability onset shows earnings losses to be approximately €400 per month for the first two years. For male workers over 54, total earnings losses are greater although they receive greater benefits.

Effects of public employment services on labor transitions: an analysis for the Spanish case

Purpose - – The purpose of this paper is to evaluate the influence of public employment services (PES) on transitions from unemployment. Design/methodology/approach - – The likelihood of exit from unemployment is explained by a multinomial logit model which takes into account the target state of the transition (unemployment, employment or inactivity). In order to analyze the unobserved heterogeneity, the model has been estimated using a Generalized Linear Latent and Mixed Models. Findings - – The analysis suggests that the contribution of PES to improving labor market outcomes is low in the case of transitions to employment. Nevertheless, PES play an important role in workforce dropout prevention. Practical implications - – The results suggest that redesign and modernization are needed to improve PES performance. More intensive job counselling should be provided so that PES get beyond workforce dropout prevention and start having clear positive effects on placement. Target groups should be defined more clearly so as to ensure sustainable transitions for individuals at risk of exclusion. PES should focus on the most disadvantaged jobseekers and those who need more help to get jobs. Originality/value - – First, the results highlight the role PES play in reducing inactivity rates. Second, this is the first study in Spain that uses Labor Force Survey (LFS) data to evaluate PES in a dynamic framework. The LFS is the only data source which allows us to relate people registered unemployed to people considered unemployed by international standards.

Sheltered Employment Centres and Labour Market Integration of People with Disabilities: A Quasi-Experimental Evaluation Using Spanish Data

In this paper, we apply propensity score matching in order to evaluate whether sheltered employment centres improve integration of people with disabilities into ordinary firms or not. We define as a control group those disabled workers never enrolled in these centres before the last employment spell, and we consider three ‘treatment’ groups: those occasionally involved in these centres; those working in these centres in their first employment spell, and those hired by these centres in any employment spell after the first one. Our results confirm that sheltered employment centres decrease the likelihood of being hired by ordinary firms in the last employment spell. This result is the same by regions (where regulation affecting centres may be different) but with a different size. The data comes from an administrative and retrospective dataset provided by the Spanish Social Security.