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The Risk of marginalization in the Labour Market: Application of the Three State Dependent Competing Risks Duration Model

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Author Info

  • Rosholm, M.

Abstract

In this paper I apply a three-state dependent competing risks model to analyse marginalization in the Danish labour market during the 1980s. I derive the theoretical contribution of a left-censored spell (which may also be right-censored), using a piecewise exponential baseline hazard specification. Dependency between risks and time spent in various states is allowed for. The main findings are that youth unemployment was a severe problem in the 1980s, caused mainly by high transition rates into nonparticipation and unemployment, rather than low transition rates into employment. Furthermore, for a certain cohort of men, 'The lost Generation', having obtained working experience is crucial to not being marginalized, that is, there are indications of a higher degree of polarization in the labour market for this particular male cohort.

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Bibliographic Info

Paper provided by Centre for Labour Market and Social Research, Danmark- in its series Papers with number 97-14.

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Length: 54 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:clmsre:97-14

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Postal: Danmark; Centre for Labour Market and Social Research. Science Park Aarhus Wieds Vej 10C, 8000 Aarhus C, Danmark
Phone: +45 8942 2350
Fax: +45 8942 2365
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Web page: http://www.cls.dk/
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Related research

Keywords: RISK ; UNEMPLOYMENT ; LABOUR MARKET;

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Cited by:
  1. Larsen, B., 1998. "Minimum Wages, Technological Progress and Loss of Skill," Papers 98-03, Centre for Labour Market and Social Research, Danmark-.
  2. 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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