SOCIAL TRANSFERS AND UNEMPLOYMENT DURATION: AN EMPIRICAL EVIDENCE OF THE EU AND TURKEY

Year 2020, , 247 - 264, 31.12.2020

Fadime İrem Doğan

https://doi.org/10.14780/muiibd.854363

Cited By: 1

Abstract

This study investigates the impact of social transfers on labor force participation in three countries (Turkey,
the Netherlands and Spain) across two different labor markets—namely, Turkey and the EU. In conducting
the comparative analysis, the focus is on impacts across different periods.
Specifically, the study assesses exit from unemployment to employment through an Accelerated Failure
Time (AFT) model, drawing on panel data from the Income and Living Conditions Survey (SILC and EUSILC)
over two periods (2006–09 and 2011–141) broken down by month (i.e. 48 months in each period). In
the 2009-09 period, the empirical results show that in all three countries studied, receipt of social transfers
prolongs the duration of unemployment, except for the Netherlands, where the opposite is true. These
findings regarding social transfers also indicate that the probability of leaving unemployment is higher for
those receiving a variety of transfers (education, disability, old age, survivors, etc.) for all countries in the
2011–14 period.

Keywords

Social Transfers, Labor Supply, Unemployment Duration, Labor Markets

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