Employment and Unemployment Transitions in Spain from 1996 to 2005

In this paper, we have studied the employment and nonemployment transitions in Spain from 1996 to 2005. To do so, we have used a multi-state multiepisode duration model and a censored continuous-time Markovian matrix. By using the censored Markovian matrix, we have been able to balance the negative effect that censore has on the estimated parameters. The results obtained suggest that women have a probability of employment six percent lower than men. In addition, we have been able to show that Spanish employees experience three different stages of employment during their first decade in the labor market.