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Combining Micro and Macro Unemployment Duration Data

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  • Gerard J. van den Berg

    ()
    (Vrije Universiteit Amsterdam, CEPR)

  • Bas van der Klaauw

    ()
    (Vrije Universiteit Amsterdam)

Abstract

We combine micro and macro unemployment duration data to study the effects of the business cycle on the outflow from unemployment. We allow the cycle to affect individual exit probabilities of unemployed workers as well as the composition of the total inflow into unemployment. We estimate the model using (micro) survey data and (macro) administrative data from France. The distribution of the inflow composition is estimated along with the other parameters. The estimation method deals with differences between the micro and macro unemployment definitions. The results also show to what extent the unemployment duration distributions corresponding to the two definitions can be described by the same model. This discussion paper resulted in a publication in the Journal of Econometrics .

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 98-098/3.

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Date of creation: 18 Sep 1998
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Handle: RePEc:dgr:uvatin:19980098

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Related research

Keywords: Unemployment composition; Heterogeneity; Duration dependence; Business cycle; Seasons; Unemployment definition;

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  1. van den Berg, Gerard J. & van der Klaauw, Bas, 2000. "Combining Micro and Macro Unemployment Duration Data," IZA Discussion Papers 109, Institute for the Study of Labor (IZA).
  2. Layard, Richard & Nickell, Stephen & Jackman, Richard, 1991. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780198284345, Octomber.
  3. Darby, Michael R & Haltiwanger, John C & Plant, Mark W, 1985. "Unemployment Rate Dynamics and Persistent Unemployment under Rational Expectations," American Economic Review, American Economic Association, vol. 75(4), pages 614-37, September.
  4. Bean, Charles R, 1994. "European Unemployment: A Survey," Journal of Economic Literature, American Economic Association, vol. 32(2), pages 573-619, June.
  5. repec:fth:inseep:9858 is not listed on IDEAS
  6. Gallant, A Ronald & Nychka, Douglas W, 1987. "Semi-nonparametric Maximum Likelihood Estimation," Econometrica, Econometric Society, vol. 55(2), pages 363-90, March.
  7. van den Berg, Gerard J, 1990. "Search Behaviour, Transitions to Nonparticipation and the Duration of Unemployment," Economic Journal, Royal Economic Society, vol. 100(402), pages 842-65, September.
  8. Imbens, G.W. & Lancaster, T., 1991. "Combining Micro and Macro Data in Microeconometric Models," Harvard Institute of Economic Research Working Papers 1578, Harvard - Institute of Economic Research.
  9. Laisney, François & Lechner, Michael, 1993. "Combining panel data and macro information: an application to the estimation of a participation model," ZEW Discussion Papers 93-23, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  10. Berg, G.J. van den, 1987. "Nonstationarity in job search theory," Research Memorandum 242, Tilburg University, Faculty of Economics and Business Administration.
  11. Magnac & Visser, 1999. "Transition models with measurement errors," Working Papers 156514, Institut National de la Recherche Agronomique, France.
  12. Michael Baker & Angelo Melino, 1999. "Duration Dependence and Nonparametric Heterogeneity: A Monte Carlo Study," Working Papers melino-99-01, University of Toronto, Department of Economics.
  13. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, December.
  14. Honore, Bo E, 1993. "Identification Results for Duration Models with Multiple Spells," Review of Economic Studies, Wiley Blackwell, vol. 60(1), pages 241-46, January.
  15. Van den Berg, Gerard J., 2000. "Duration Models: Specification, Identification, and Multiple Durations," MPRA Paper 9446, University Library of Munich, Germany.
  16. Thierry Magnac, 1997. "State Dependence and Heterogeity in youth Employment Histories," Working Papers 97-47, Centre de Recherche en Economie et Statistique.
  17. Imbens, G W, 1994. "Transition Models in a Non-stationary Environment," The Review of Economics and Statistics, MIT Press, vol. 76(4), pages 703-20, November.
  18. Magnac, Thierry, 2000. "Subsidised Training and Youth Employment: Distinguishing Unobserved Heterogeneity from State Dependence in Labour Market Histories," Economic Journal, Royal Economic Society, vol. 110(466), pages 805-37, October.
  19. Baker, Michael, 1992. "Unemployment Duration: Compositional Effects and Cyclical Variability," American Economic Review, American Economic Association, vol. 82(1), pages 313-21, March.
  20. Berg, G.J. & Ours, J.C., 1993. "Unemployment dynamics and duration dependence," Serie Research Memoranda 0022, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  21. Dynarski, Mark & Sheffrin, Steven M, 1990. "The Behavior of Unemployment Durations over the Cycle," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 350-56, May.
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