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Specification Tests for the Competing Risks Duration Model: An Application to Unemployment Duration and Sectoral Movement

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  • Pudney, Stephen
  • Thomas, Jonathan

Abstract

This study develops three specification tests for the competing risks duration model. They include a general test for misspecification and specific tests for heterogeneity and defective risk distributions. The last two tests involve null hypotheses located on the boundary of the parameter space and the authors consider alternative formulations of the score test to take account of this. The tests are applied to models of unemployment duration in which displaced job seekers may become reemployed in the preunemployment industry or switch industries. Copyright 1995 by Blackwell Publishing Ltd

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Bibliographic Info

Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 57 (1995)
Issue (Month): 3 (August)
Pages: 323-47

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Handle: RePEc:bla:obuest:v:57:y:1995:i:3:p:323-47

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Cited by:
  1. Addison, John T. & Portugal, Pedro, 2001. "Unemployment Duration: Competing and Defective Risks," IZA Discussion Papers 350, Institute for the Study of Labor (IZA).
  2. Fabrizia Mealli & Stephen Pudney, . "Applying Heterogeneous Transition Models in Labour Economics: The Role of Youth Training in labour Market transitions," Discussion Papers in Public Sector Economics 99/5, Department of Economics, University of Leicester.
  3. Ulrich Kaiser & Andrea Szczesny, 2000. "Einfache oekonomische Verfahren fuer die Kreditrisikomessung," CoFE Discussion Paper 00-28, Center of Finance and Econometrics, University of Konstanz.
  4. Melkersson, Maria, 1999. "Unemployment duration and heterogenous search behavior among Swedish disabled workers," Working Paper Series 1999:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  5. Virve Ollikainen & Tomi Kyyrä, 2006. "To Search or Not to Search? The Effects of UI Benefit Extension for the Elderly Unemployed," Discussion Papers 400, Government Institute for Economic Research Finland (VATT).
  6. Eyal, Yonatan & Beenstock, Michael, 2008. "Sign reversal in LIVE treatment effect estimates: The effect of vocational training on unemployment duration," Labour Economics, Elsevier, vol. 15(5), pages 1102-1125, October.

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