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Temporary layoffs and split population models Author info | Abstract | Publisher info | Download info | Related research | Statistics Kostas G. Mavromaras (University of Aberdeen, UK)
Chris D. Orme (University of Manchester, UK)
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This paper develops and estimates a split population model for the duration of temporary layoffs in the German labour market; the population being split according to whether a layoff is temporary or permanent. A flexible piecewise constant hazard is employed and the recall propensity is used to condition the duration of a temporary layoff. The distinction between factors that influence the recall propensity and factors that influence the duration of a temporary layoff is shown to be of empirical significance. The results of the paper are used to evaluate implicit contract and search theories of temporary layoffs. The paper suggests that implicit contracts can explain the behaviour of unemployed workers with high worker-firm attachment whilst search can explain the behaviour of workers with low worker-firm attachment. Copyright © 2004 John Wiley & Sons, Ltd.
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics .
Volume (Year): 19 (2004)
Issue (Month): 1 ()
Pages: 49-67
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Handle: RePEc:jae:japmet:v:19:y:2004:i:1:p:49-67Contact details of provider: Web page: http://www.interscience.wiley.com/jpages/0883-7252/
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Keywords: References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
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Other versions: Blundell, Richard & Meghir, Costas, 1987.
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Peter Schmidt & Ann Dryden Witte, 1989.
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Other versions: Hausman, Jerry A, 1978.
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Other versions: White, Halbert, 1982.
"Maximum Likelihood Estimation of Misspecified Models ,"
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Feldstein, Martin S, 1976.
"Temporary Layoffs in the Theory of Unemployment ,"
Journal of Political Economy ,
University of Chicago Press, vol. 84(5), pages 937-57, October.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Alfonso Alba Ramirez & Jose Maria Arranz-Munoz & Fernando Munoz-Bullon, 2006.
"Exits from unemployment: recall or new job ,"
Business Economics Working Papers
wb060301, Universidad Carlos III, Departamento de Economía de la Empresa.
[Downloadable!]
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