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Assessing the Job-Finding Probability of Older and Prime-Age Unemployed Workers

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  • Vladislav Flek
  • Martin Hála
  • Martina Mysíková

Abstract

We analyse the extent and determinants of somewhat gloomy employment prospects of older unemployed populations in Austria, the Czech Republic, Poland and Slovakia. For this purpose, we explore the European Union Statistics on Income and Living Conditions over the period 2004-2014. Survival estimates suggest that older unemployed workers face lower job-finding probabilities compared to prime-age unemployed workers, while this age-based gap increases with longer unemployment spells. The results of estimating the hazard models reveal that the job-finding probability of older unemployed workers is about 20-25% lower than that of the prime-age group, even after controlling for explanatory covariates and unobserved heterogeneity. Unemployment duration appears to be the major determinant of job-finding probability within both age groups. In contrast, the impact of explanatory covariates (gender, education, household characteristics, etc.) is relatively less robust and/or uniform.

Suggested Citation

  • Vladislav Flek & Martin Hála & Martina Mysíková, 2020. "Assessing the Job-Finding Probability of Older and Prime-Age Unemployed Workers," Prague Economic Papers, Prague University of Economics and Business, vol. 2020(4), pages 424-444.
    • Handle: RePEc:prg:jnlpep:v:2020:y:2020:i:4:id:738:p:424-444
    DOI: 10.18267/j.pep.738
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    References listed on IDEAS

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    1. Ichino, Andrea & Schwerdt, Guido & Winter-Ebmer, Rudolf & Zweimüller, Josef, 2017. "Too old to work, too young to retire?," The Journal of the Economics of Ageing, Elsevier, vol. 9(C), pages 14-29.
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    More about this item

    Keywords

    Hazard model; job-finding probability; older population; survival function; unemployment duration;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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