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Unemployment duration, job search and labour market segmentation Evidence from urban Ethiopia

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  • Pieter Serneels

Abstract

Although it is a common theoretical assumption that the chances to find a job fall with time in unemployment, this is not systematically confirmed by empirical evidence, and there is no evidence for developing countries. We develop a framework that allows us to test the four major explanations why we may observe non-negative duration dependence while genuine duration dependence is negative: financial support for the unemployed, active labour market policies, a change in the economy over time, and segmentation of the labour market into ‘good’ and ‘bad’ jobs. Using data for urban Ethiopia we observe a constant hazard while controlling for unobserved heterogeneity, and find that labour market segmentation is the only convincing explanation.

Suggested Citation

  • Pieter Serneels, 2008. "Unemployment duration, job search and labour market segmentation Evidence from urban Ethiopia," CSAE Working Paper Series 2008-17, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2008-17
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    References listed on IDEAS

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    1. van den Berg, Gerard J. & van der Klaauw, Bas, 2001. "Combining micro and macro unemployment duration data," Journal of Econometrics, Elsevier, vol. 102(2), pages 271-309, June.
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    5. Van den Berg, Gerard J., 2001. "Duration models: specification, identification and multiple durations," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 55, pages 3381-3460, Elsevier.
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    Cited by:

    1. Headey, Derek D. & Bachewe, Fantu Nisrane & Worku, Ibrahim & Dereje, Mekdim & Taffesse, Alemayehu Seyoum, 2012. "Urban wage behavior and food price inflation: the case of Ethiopia [Working Paper]:," ESSP working papers 41, International Food Policy Research Institute (IFPRI).

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    More about this item

    Keywords

    unemployment; duration dependence; segmented labour markets; urban labour market;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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