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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Paper provided by Centre for Labour Market and Social Research, Danmark- in its series Papers with number
97-14.
Length: 54 pages Date of creation: 1997 Date of revision: Handle: RePEc:fth:clmsre:97-14
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Find related papers by JEL classification: J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
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