Short- and Long-Term Unemployment: How do Temporary Layoffs Affect this Distinction?

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Short- and Long-Term Unemployment: How do Temporary Layoffs Affect this Distinction?

Author Info

Jensen, P.
Nielsen, M.S.

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Peter Jensen

Abstract

In this paper, we compare two different types of models for the duration of unemployment spells: the multiple phase duration model and the competing risks model. Both models allow for non-proportionality of the effect of the explanatory variables on the hazard function. The two models are applied to Danish unemployment data containing a large fraction of temporary layoffs. The econometric analysis shows that the results from the multiple phase duration model are contaminated by the presence of temporary layoffs. the multiple phase duration model should therefore be applied with care in order to avoid misinterpretations of the results.

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Publisher Info
Paper provided by Centre for Labour Market and Social Research, Danmark- in its series Papers with number 99-06.

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Length: 29 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:clmsre:99-06

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Article
- Peter Jensen & Michael Svarer, 2003. "Short- and long-term unemployment: How do temporary layoffs affect this distinction?," Empirical Economics, Springer, vol. 28(1), pages 23-44, January. [Downloadable!] (restricted)

Find related papers by JEL classification:
C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Michael Rosholm & Michael Svarer & Bo Hammer, 2004. "A Danish Profiling System," CAM Working Papers 2004-22, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
Other versions:
- Rosholm, Michael & Svarer, Michael & Hammer, Bo, 2004. "A Danish Profiling System," IZA Discussion Papers 1418, Institute for the Study of Labor (IZA). [Downloadable!]
- Michael Rosholm & Michael Svarer & Bo Hammer, 2004. "A Danish Profiling System," Economics Working Papers 2004-13, School of Economics and Management, University of Aarhus. [Downloadable!]
Miguel A. Malo & Fernando Munoz-Bullon, 2008. "Working career progress in the tourism industry: Temp-to-perm transitions in Spain," Business Economics Working Papers wb083510, Universidad Carlos III, Departamento de Economía de la Empresa. [Downloadable!]
Michael Rosholm & Jonas Staghøj & Michael Svarer, 2007. "A Statistical Programme Assignment Model," Economics Working Papers 2007-16, School of Economics and Management, University of Aarhus. [Downloadable!]
Other versions:
- Jonas Staghøj & Michael Svarer & Michael Rosholm, 2007. "A Statistical Programme Assignment Model," IZA Discussion Papers 3165, Institute for the Study of Labor (IZA). [Downloadable!]
Roed,K. & Nordberg,M., 2001. "Temporary layoffs and the duration of unemployment," Memorandum 12/2001, Oslo University, Department of Economics. [Downloadable!]
Other versions:
- Roed, Knut & Nordberg, Morten, 2003. "Temporary layoffs and the duration of unemployment," Labour Economics, Elsevier, vol. 10(3), pages 381-398, June. [Downloadable!] (restricted)
Alfonso Alba-Ramirez & Jose Maria Arranz Muñoz & Fernando Muñoz-Bullon, 2006. "Unemployment Duration, Unemployment Benefits And Recalls," Business Economics Working Papers wb066218, Universidad Carlos III, Departamento de Economía de la Empresa. [Downloadable!]
Alfonso Alba Ramirez & Jose Maria Arranz-Munoz & Fernando Munoz-Bullon, 2006. "Exits from unemployment: recall or new job," Business Economics Working Papers wb060301, Universidad Carlos III, Departamento de Economía de la Empresa. [Downloadable!]
Other versions:
- Alba-Ramirez, Alfonso & Arranz, Jose M. & Munoz-Bullon, Fernando, 2007. "Exits from unemployment: Recall or new job," Labour Economics, Elsevier, vol. 14(5), pages 788-810, October. [Downloadable!] (restricted)

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