Job Durations With Worker- and Firm-Specific Effects: MCMC Estimation With Longitudinal Employer--Employee Data
AbstractWe study job durations using a multivariate hazard model allowing for worker-specific and firm-specific unobserved determinants. The latter are captured by unobserved heterogeneity terms or random effects, one at the firm level and another at the worker level. This enables us to decompose the variation in job durations into the relative contribution of the worker and the firm. We also allow the unobserved terms to be correlated in a model that is primarily relevant for markets with small firms. For the empirical analysis, we use a Portuguese longitudinal matched employer--employee dataset. The model is estimated with a Bayesian Markov chain Monte Carlo (MCMC) estimation method. The results imply that unobserved firm characteristics explain almost 40% of the systematic variation in log job durations. In addition, we find a positive correlation between unobserved worker and firm characteristics.
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Bibliographic InfoArticle provided by American Statistical Association in its journal Journal of Business & Economic Statistics.
Volume (Year): 30 (2012)
Issue (Month): 3 (July)
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Web page: http://www.amstat.org/publications/jbes/index.cfm?fuseaction=main
Other versions of this item:
- Horny, Guillaume & Mendes, Rute & van den Berg, Gerard J, 2009. "Job durations with worker and firm specific effects: MCMC estimation with longitudinal employer-employee data," Working Paper Series 2009:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Horny, Guillaume & Mendes, Rute & van den Berg, Gerard J., 2009. "Job Durations with Worker and Firm Specific Effects: MCMC Estimation with Longitudinal Employer-Employee Data," IZA Discussion Papers 3992, Institute for the Study of Labor (IZA).
- C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
- C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion
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