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Unemployment Persistence in the West German Labour Market: Negative Duration Dependence or Sorting?

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  • Steiner, Viktor
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    Abstract

    The paper tests for negative duration dependence in West German unemployment in the presence of unobserved population heterogeneity. The analysis is based of a microeconometric model estimated on the German Socio-Economic Panel covering the period 1983 to 1995. I find that, after controlling for observed and unobserved population heterogeneity, individual re-employment probabilities are constant or even increase slightly with duration and, thus, reject the hypothesis that the high and increasing share of long-term unemployment in West Germany can be explained by structural negative duration dependence. Copyright 2001 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): 63 (2001)
    Issue (Month): 1 (February)
    Pages: 91-113

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    Handle: RePEc:bla:obuest:v:63:y:2001:i:1:p:91-113

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