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Temporary Layoffs and the Duration of Unemployment

Sammendrag

We use Norwegian micro-data to identify the driving forces behind unemployment spells following temporary- and permanent dismissals. The duration of unemployment spells for permanently dismissed workers is primarily explained by individual resources and eco-nomic incentives, while spell-duration for temporary dismissed workers is explained by firm incentives. Structural duration dependence is non-parametrically identified and sharply estimated with the aid of variation in business cycles and repeated spells. The em-ployment hazards for both spell-types exhibit positive duration dependence during the first months and negative duration dependence thereafter.

Om publikasjonen

Forfattere:

Røed, Knut and Nordberg, Morten

År:

2003

Tidsskrift:

Labour Economics

Serie:

Vitenskapelige tidskrift

JEL:

C41, J64

Nøkkelord:

unemployment duration, unobserved heterogeneity, competing risks

Prosjekt:

1312 - Forløp av arbeidsledighet

Kontakt:

knut.roed@frisch.uio.no

Finansiering:

Arbeids- og administrasjonsdepartementet