The Analysis of Transition Data by the Minimum Chi-Square Method. An Application to Welfare Spells in Belgium
AbstractIn this paper we analyse transition data by means of the minimum chi-square (MCS) method in stead of the more commonly used maximum likelihood (ML) method. The method requires a very large dataset with relatively little information on determining factors. If such data are available, the MCS method is to be the estimation procedure of choice, because it is more robust than the ML method and it has a lower mean square error for small sample sizes. The latter property is shown to be particularly relevant if one is interested in the estimation of the tail of the duration distribution. The analysis includes exists to multiple destinations and unmeasured heterogeneity. In the empirical application turnover in the welfare system is found to be very high in Belgium. Median duration is 4.5 months for men and 7 months for women. These figures overstate turnover in that exits out of welfare include those occurring as a consequence of recipients moving to another municipality while remaining on welfare.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 1995008.
Date of creation: 01 Feb 1990
Date of revision: 00 Mar 1995
duration analysis; provision and effects of welfare programs;
Find related papers by JEL classification:
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
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- Vandenberghe Vincent, 2003. "Leaving teaching in the French-Speaking Community of Belgium: a duration analysis," Public Economics 0308001, EconWPA, revised 21 Aug 2003.
- Cockx, Bart & Ridder, Geert, 2001.
"Social Employment of Welfare Recipients in Belgium: An Evaluation,"
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- Bart Cockx & Geert Ridder, 2000. "Social Employment Of Welfare Recipients In Belgium: An Evaluation," Economics Working Paper Archive 425, The Johns Hopkins University,Department of Economics.
- Geert Ridder & Bart Cockx, 1999. "Social Employment of Welfare Recipients in Belgium: An Evaluation," Economics Working Paper Archive 415, The Johns Hopkins University,Department of Economics.
- V. Vandenberghe, 2000. "Leaving Teaching in the French-Speaking Community of Belgium: A Duration Analysis," Education Economics, Taylor & Francis Journals, vol. 8(3), pages 221-239.
- Vandenberghe Vincent, 2003. "Leaving teaching in the French-Speaking Community of Belgium: a duration analysis," Public Economics 0308003, EconWPA.
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