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Unemployment duration and heterogenous search behavior among Swedish disabled workers

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Author Info

  • Melkersson, Maria

    ()
    (IFAU - Office of Labour Market Policy Evaluation)

Abstract

Return to employment, after a period of unemployment, is analyzed for a large sample of Swedish occupationally disabled workers. A piece-wise constant model is used, extended to allow for Gamma heterogeneity. Three competing exits from unemployment are accounted for; regular employment, sheltered/subsidized employment and withdrawal from the labor force. The model is also generalized by accounting for differing search behavior within the population. The hazard rate is constant or slightly increasing over time, for exit to some kind of employment. However, for exit from unemployment by leaving the labor force, the hazard shows quite strong positive duration dependence. Men tend to be more probable to leave unemployment for regular employment, and less probable than women to leave the labor force. The probability of finding regular employment is smallest for workers with psychological disabilities, while high-school or university education as well as previous professional experience increases the hazard rate for regular employment. The heterogeneity due to differing search behavior appears to be at least as important as the Gamma heterogeneity. The estimated probabilities of no search for one particular exit varies, across exits and subsamples, between 0.0 and 0.4.

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Bibliographic Info

Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 1999:5.

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Length: 23 pages
Date of creation: 24 Aug 1999
Date of revision:
Handle: RePEc:hhs:ifauwp:1999_005

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Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
Phone: (+46) 18 - 471 70 70
Fax: (+46) 18 - 471 70 71
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Web page: http://www.ifau.se/
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Related research

Keywords: Unemployment;

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References

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  1. Han, Aaron & Hausman, Jerry A, 1990. "Flexible Parametric Estimation of Duration and Competing Risk Models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(1), pages 1-28, January-M.
  2. Regina Riphahn, 1997. "Disability retirement and unemployment - substitute pathways for labour force exit? An empirical test for the case of Germany," Applied Economics, Taylor & Francis Journals, vol. 29(5), pages 551-561.
  3. Edin, Per-Anders, 1989. " Unemployment Duration and Competing Risks: Evidence from Sweden," Scandinavian Journal of Economics, Wiley Blackwell, vol. 91(4), pages 639-53.
  4. Ham, John C & LaLonde, Robert J, 1996. "The Effect of Sample Selection and Initial Conditions in Duration Models: Evidence from Experimental Data on Training," Econometrica, Econometric Society, vol. 64(1), pages 175-205, January.
  5. Lancaster, Tony, 1979. "Econometric Methods for the Duration of Unemployment," Econometrica, Econometric Society, vol. 47(4), pages 939-56, July.
  6. Pudney, Stephen & Thomas, Jonathan, 1995. "Specification Tests for the Competing Risks Duration Model: An Application to Unemployment Duration and Sectoral Movement," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(3), pages 323-47, August.
  7. Gritz, R. Mark, 1993. "The impact of training on the frequency and duration of employment," Journal of Econometrics, Elsevier, vol. 57(1-3), pages 21-51.
  8. Marjorie Baldwin & William G. Johnson, 1994. "Labor Market Discrimination against Men with Disabilities," Journal of Human Resources, University of Wisconsin Press, vol. 29(1), pages 1-19.
  9. Edin, P-A. & Holmlund, B., 1990. "Unemployment, Vacancies And Labour Market Programmes: Swedish Evidence," Papers 1990j, Uppsala - Working Paper Series.
  10. Heckman, James J & Borjas, George J, 1980. "Does Unemployment Cause Future Unemployment? Definitions, Questions and Answers from a Continuous Time Model of Heterogeneity and State Dependence," Economica, London School of Economics and Political Science, vol. 47(187), pages 247-83, August.
  11. Carling, Kenneth & Edin, Per-Anders & Harkman, Anders & Holmlund, Bertil, 1996. "Unemployment duration, unemployment benefits, and labor market programs in Sweden," Journal of Public Economics, Elsevier, vol. 59(3), pages 313-334, March.
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Citations

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Cited by:
  1. Nuria Rodriguez-Planas†, 2007. "What Works Best For Getting The Unemployed Back To Work: Employment Services Or Small-Business Assistance Programmes? Evidence From Romania," Working Papers 2007-32, FEDEA.
  2. Dario Sciulli & Antonio Menezes & José Vieira, 2012. "Unemployment Duration and Disability: Evidence from Portugal," Journal of Labor Research, Springer, vol. 33(1), pages 21-48, March.
  3. Barbara Sianesi, 2001. "Differential effects of Swedish active labour market programmes for unemployed adults during the 1990s," IFS Working Papers W01/25, Institute for Fiscal Studies.
  4. Skedinger, Per & Widerstedt, Barbro, 2003. "Recruitment to Sheltered Employment: Evidence from Samhall, a Swedish State-Owned Company," Working Paper Series 597, Research Institute of Industrial Economics.
  5. Melkersson, Maria, 1999. "Policy programmes only for a few? Participation in labour market programmes among Swedish disabled workers," Working Paper Series 1999:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  6. Barbara Sianesi, 2002. "Swedish active labour market programmes in the 1990s: overall effectiveness and differential performance," IFS Working Papers W02/03, Institute for Fiscal Studies.
  7. Sianesi, Barbara, 2001. "An evaluation of the active labour market programmes in Sweden," Working Paper Series 2001:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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