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How Does a Worker's Labour Market History Affect Job Duration?

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Author Info

  • Jeff Borland

    (Department of Economics and Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

  • David Johnston

    (School of Economics and Finance, Queensland University of Technology)

Abstract

This study explores the relation between a worker's job duration and prior labour market experience. Hazard models are estimated using data on employment spells for the population aged 25 to 64 years in Australia from the HILDA survey (waves 1 to 7). A worker's labour force state immediately preceding an employment spell is found to have a significant effect on the likelihood of exit from employment, as well as the exit destination and whether the exit is involuntary. In particular, previously being unemployed or having experienced involuntary separation from a job is associated with worse subsequent employment outcomes. To develop further insights into the role of labour market history a hazard model for exit from unemployment is also estimated, and the results contrasted with those from the employment model.

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Bibliographic Info

Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2010n06.

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Length: 30 pages
Date of creation: Jun 2010
Date of revision:
Handle: RePEc:iae:iaewps:wp2010n06

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Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
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Web page: http://www.melbourneinstitute.com/
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Keywords: unemployment; job tenure; hazard rate;

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References

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  1. Nick Carroll, 2006. "Explaining Unemployment Duration in Australia," The Economic Record, The Economic Society of Australia, vol. 82(258), pages 298-314, 09.
  2. Nick Carroll, 2007. "Unemployment and Psychological Well-being," The Economic Record, The Economic Society of Australia, vol. 83(262), pages 287-302, 09.
  3. Knights, Stephen & Harris, Mark N & Loundes, Joanne, 2002. "Dynamic Relationships in the Australian Labour Market: Heterogeneity and State Dependence," The Economic Record, The Economic Society of Australia, vol. 78(242), pages 284-98, September.
  4. Jenny Chalmers & Guyonne Kalb, 2001. "Moving from Unemployment to Permanent Employment: Could a Casual Job Accelerate the Transition?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 34(4), pages 415-436.
  5. Jeff Borland, 1990. "Unemployment in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 23(1), pages 41-51.
  6. Yi-Ping Tseng & Ha Vu & Roger Wilkins, 2006. "Dynamic Properties of Income Support Receipt in Australia," Melbourne Institute Working Paper Series wp2006n23, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  7. repec:ese:iserwp:2000-05 is not listed on IDEAS
  8. Le, Anh T & Miller, Paul W, 2001. "Is a Risk Index Approach to Unemployment Possible?," The Economic Record, The Economic Society of Australia, vol. 77(236), pages 51-70, March.
  9. Boheim, Rene & Taylor, Mark P., 2002. "The search for success: do the unemployed find stable employment?," Labour Economics, Elsevier, vol. 9(6), pages 717-735, December.
  10. Doiron, Denise & Gørgens, Tue, 2008. "State dependence in youth labor market experiences, and the evaluation of policy interventions," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 81-97, July.
  11. Hielke Buddelmeyer & Mark Wooden, 2008. "Transitions from Casual Employment in Australia," Melbourne Institute Working Paper Series wp2008n07, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  12. Hielke Buddelmeyer & Wang-Sheng Lee & Mark Wooden, 2009. "Low-Paid Employment and Unemployment Dynamics in Australia," Melbourne Institute Working Paper Series wp2009n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  13. Nicole Watson & Mark Wooden, 2004. "The HILDA Survey Four Years On," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 37(3), pages 343-349, 09.
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