The social cost of unemployment in Spain: Who are the losers?
The social cost of unemployment is an evaluation protocol proposed by Gorjón, de la Rica & Villar (2018) that integrates into a single indicator three different dimensions of this phenomenon: incidence (the conventional unemployment rate), severity (depending on the unemployment duration and the lost income) and hysteresis (the probability of remaining unemployed). This indicator corresponds to the aggregate disutility of unemployed workers and can thus be regarded as a measure of the social welfare loss due to unemployment. We apply here this evaluation protocol to the Spanish labour market, using the official register of unemployed workers compiled by the Public Employment Service, focusing on the differences among the types of unemployed workers that can be defined according to gender, age, level of studies, unemployment duration, and type of compensation received. Then we identify the population subgroups that suffer most the impact of unemployment.