Unemployment benefits reduce job search pressure, business cycle plays minor role.
The length of time someone is unemployed can be affected by how long they receive benefits and the state of the economy. Research on Spanish men from 1987-94 shows that having unemployment benefits reduces the chances of leaving unemployment, especially after three months. When the economy is doing well, people are more likely to find a job and leave unemployment. However, the impact of benefits on unemployment duration is bigger than the effect of a good economy.