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Competing risks for vacancy durations and endogenous common dependence

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  • Ilpo Suoniemi

Abstract

The paper presents a discussion how firms rationally adjust the level of their recruitment effort in relation to the ease of filling the vacancy through public unemployment offices. This induces dependence between the durations in the two channels of recruitment. Multivariate models with random proportional hazards generated by mixtures, the frailty distributions are used in the paper to discuss and estimate a competing risks model with mutually dependent recruitment channels using Finnish vacancy duration data. The channels of recruitment are found to be (positively) associated. Vacancy durations vary with respect to region, industry, occupational status and local labour market conditions. The explanatory variables have a more moderate effect in the private recruitment channel possibly reflecting a rational adjustment in the search effort by the employer.

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Bibliographic Info

Paper provided by Government Institute for Economic Research Finland (VATT) in its series Discussion Papers with number 107.

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Date of creation: 01 Jan 1995
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Handle: RePEc:fer:dpaper:107

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Keywords: Vacancy duration; competing risks model; multivariate distributions; mixtures; frailties.;

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