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Dynamic Relationships in the Australian Labour Market: Heterogeneity and State Dependence

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  • Knights, Stephen
  • Harris, Mark N
  • Loundes, Joanne

Abstract

In this study, individual labour market dynamics are analysed using the Australian Longitudinal Survey. A random utility framework for analysing discrete choices is adopted. In this context, a model incorporating a state dependent relationship between employment outcomes is estimated. The influence on individual employment outcomes of additional variables including education, gender and unemployment benefits is also investigated. It is found that, even after controlling for observable and unobservable differences between individuals, there is evidence of state dependence, which may constitute evidence of a "scarring" effect of unemployment. Copyright 2002 by The Economic Society of Australia.

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Bibliographic Info

Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 78 (2002)
Issue (Month): 242 (September)
Pages: 284-98

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Handle: RePEc:bla:ecorec:v:78:y:2002:i:242:p:284-98

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Cited by:
  1. Ahn, Taehyun, 2012. "Employment Dynamics of Married Women and the Role of Part-time Work: the Case of Korea," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 53(1), pages 25-38, June.
  2. Nordström Skans, Oskar, 2004. "Scarring effects of the first labour market experience: A sibling based analysis," Working Paper Series 2004:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  3. Taehyun Ahn, 2010. "Employment Dynamics of Married Women and the Role of Part-Time Work: Evidence from Korea," Working Papers 1003, Research Institute for Market Economy, Sogang University.
  4. Bruce Chapman & Matthew Gray, 2002. "Youth Unemployment: Aggregate Incidence and Consequences for Individuals," CEPR Discussion Papers 459, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  5. Yin King Fok & Rosanna Scutella & Roger Wilkins, 2013. "The Low-Pay No-Pay Cycle: Are There Systematic Differences across Demographic Groups?," Melbourne Institute Working Paper Series wp2013n32, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  6. Victoria Prowse, 2005. "State Dependence in a Multi-state Model of Employment Dynamics," Economics Series Working Papers 2005-W20, University of Oxford, Department of Economics.
  7. Biewen, Martin & Steffes, Susanne, 2010. "Unemployment persistence: Is there evidence for stigma effects?," Economics Letters, Elsevier, vol. 106(3), pages 188-190, March.
  8. Jeff Borland & Yi-Ping Tseng, 2003. "How Do Administrative Arrangements Affect Exit from Unemployment Payments? The Case of the Job Seeker Diary in Australia," Melbourne Institute Working Paper Series wp2003n27, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  9. Nordström Skans, Oskar, 2011. "Scarring Effects of the First Labor Market Experience," IZA Discussion Papers 5565, Institute for the Study of Labor (IZA).
  10. Lundin, Andreas & Hemmingsson, Tomas, 2013. "Adolescent predictors of unemployment and disability pension across the life course – a longitudinal study of selection in 49 321 Swedish men," Working Paper Series 2013:25, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  11. Jarvis, Lovell S. & Cancino, Jose P. & Bervejillo, Jose E., 2005. "The Effect of Foot and Mouth Disease on Trade and Prices in International Beef Markets," 2005 Annual meeting, July 24-27, Providence, RI 19424, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  12. Jeff Borland & David Johnston, 2010. "How Does a Worker's Labour Market History Affect Job Duration?," Melbourne Institute Working Paper Series wp2010n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  13. Kostas Mavromaras & Cain Polidano, 2011. "Improving the Employment Rates of People with Disabilities through Vocational Education," Melbourne Institute Working Paper Series wp2011n03, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  14. Jeff Borland & Yi-Ping Tseng, 2004. "Does 'Work for the Dole' Work?," Melbourne Institute Working Paper Series wp2004n14, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  15. Maite Blázquez Cuesta & Santiago Budria, 2012. "Unemployment Persistence: How Important Are Non-cognitive Skills?," SOEPpapers on Multidisciplinary Panel Data Research 513, DIW Berlin, The German Socio-Economic Panel (SOEP).
  16. Cain Polidano & Ha Vu, 2012. "Labour market impacts from disability onset," ANU Working Papers in Economics and Econometrics 2012-583, Australian National University, College of Business and Economics, School of Economics.
  17. Zucchelli, E.; & Harris, M.; & Zhao, X.;, 2012. "Ill-health and transitions to part-time work and self-employment among older workers," Health, Econometrics and Data Group (HEDG) Working Papers 12/04, HEDG, c/o Department of Economics, University of York.
  18. Cain Polidano & Ha Vu, 2012. "Labour Market Impacts from Disability Onset," Melbourne Institute Working Paper Series wp2012n22, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  19. Victoria Prowse, 2005. "State Dependence in a Multi-state Model of Employment," Economics Papers 2005-W20, Economics Group, Nuffield College, University of Oxford.

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