Cessation of Activity Benefit for Spanish Self-employed WorkersA Heterogeneous Impact Evaluation

  1. Ignacio Moral-Arce 1
  2. Javier Martín-Román 2
  3. Ángel L. Martín-Román 3
  1. 1 Instituto de Estudios Fiscales
    info

    Instituto de Estudios Fiscales

    Madrid, España

  2. 2 Universidad Nacional de Educación a Distancia
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    Universidad Nacional de Educación a Distancia

    Madrid, España

    ROR https://ror.org/02msb5n36

  3. 3 Universidad de Valladolid
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    Universidad de Valladolid

    Valladolid, España

    ROR https://ror.org/01fvbaw18

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Revista:
Hacienda Pública Española / Review of Public Economics

ISSN: 0210-1173

Año de publicación: 2019

Título del ejemplar: Impact Evaluation of Public Policies : 2019

Número: 231

Páginas: 41-79

Tipo: Artículo

DOI: 10.7866/HPE-RPE.19.4.2 DIALNET GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: Hacienda Pública Española / Review of Public Economics

Resumen

The goal of this paper is to evaluate the effects of a public policy implemented through the Spanish Social Security system: the Cessation of Activity Benefit (CAB) for self-employed workers. Making use of the Continuous Sample of Working Lives (MCVL) and by means of a Propensity Score Matching (PSM) methodology, our results show that, when we do not take into account heterogeneity in the treatment, self-employed workers receiving CAB experience non-employment spells between 33 and 38 logarithmic points longer than their not entitled counterparts. We also detect that this difference is not constant but depends on the likelihood of being treated. We believe that the two traditional problems that affect the insurance markets, consequence of the asymmetric information, adverse selection and moral hazard, are behind these results.

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Información de financiación

The third author was partially supported by the Spanish Ministry of Economy, Industry and Competitiveness under project ECO2017-82227-P

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