Re-employment probabilities of young workers in Spain

We use the Labour Force Survey (EPA) to study labour market performance of experienced young men and women in Spain. More particularly, we use matched EPA files for the period 1987-1996 to analyse re-employment probabilities among workers aged 16-29 who posses work experience. A discrete hazard rate model, assuming competing risks, allows us to investigate the factors that affect the probability of leaving unemployment for becoming either employed or inactive. In addition to a set of explanatory variables related to personal and previous job characteristics, we include year durnmies to control for the effects of the economic cycle and other relevant factors that may have changed over the period of study. As an alternative measure for the business cycle, GDP growth is used. Duration dependence is incorporated in the model in a flexible way by including quarterly durnmies