The effect of outplacement on unemployment duration in Spain

Abstract

The paper analyses the effects of individual and group outplacement services for a group of unemployed workers in Spain on their unemployment spells. Two data bases are used, one from the Spanish Department of Employment (INEM) and other from one of the most important outplacement firms (Creade), between 1998 and 2003. Using (non-parametric) matching methods and unemployment duration as outcome variable, the results suggest outplacement produces a “reservation wage” effect for men, increasing unemployment spell by three and two months for individual and group outplacement, respectively. Women who receive the services increase very slightly unemployment duration, showing also (non-significant) spell reductions for individual outplacement.