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

Author

Listed:
  • 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.

Suggested Citation

  • Jeff Borland & David Johnston, 2010. "How Does a Worker's Labour Market History Affect Job Duration?," Melbourne Institute Working Paper Series wp2010n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    • Handle: RePEc:iae:iaewps:wp2010n06
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    File URL: http://melbourneinstitute.unimelb.edu.au/downloads/working_paper_series/wp2010n06.pdf
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    References listed on IDEAS

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    Cited by:

    1. Matthew Forbes & Andrew Barker, 2017. "Local Labour Markets and Unemployment Duration," The Economic Record, The Economic Society of Australia, vol. 93(301), pages 238-254, June.
    2. Cristian Ionel Rotaru, 2014. "Transitioning Out of Unemployment: Analysis Using the ABS Longitudinal Labour Force Survey File," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 17(2), pages 111-137.

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    More about this item

    Keywords

    unemployment; job tenure; hazard rate;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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