Temporary Layoffs and the Duration of Unemployment
Røed, Knut and Nordberg, Morten
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.
unemployment duration, unobserved heterogeneity, competing risks
Frisch prosjekt: 1312 - Unemployment transitions
Arbeids- og administrasjonsdepartementet