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Estimating the Probability of Leaving Unemployment Using Uncompleted Spells from Repeated Cross-Section Data

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  • Güell, Maia

    ()
    (University of Edinburgh)

  • Hu, Luojia

    ()
    (Federal Reserve Bank of Chicago)

Abstract

This paper proposes a new econometric estimation method for analyzing the probability of leaving unemployment using uncompleted spells from repeated cross-section data, which can be especially useful when panel data are not available. The proposed method-ofmoments- based estimator has two important features: (1) it estimates the exit probability at the individual level and (2) it does not rely on the stationarity assumption of the inflow composition. We illustrate and gauge the performance of the proposed estimator using Spanish Labor Force Survey data, and analyze the changes in distribution of unemployment between the 1980s and 1990s during a period of labor market reform. We find that the relative probability of leaving unemployment for the short-term unemployed compared to the long-term unemployed becomes significantly higher in the 1990s.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1079.

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Length: 46 pages
Date of creation: Mar 2004
Date of revision:
Publication status: published in: Journal of Econometrics, 2006, 133 (1), 307-341
Handle: RePEc:iza:izadps:dp1079

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Keywords: repeated cross-section data; GMM; duration analysis; unemployment;

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Cited by:
  1. Carlos Gradín & Olga Cantó & Coral del Río, 2012. "Unemployment and Spell Duration during the Great Recession in the EU," Working Papers 1205, Universidade de Vigo, Departamento de Economía Aplicada.
  2. Álvarez de Toledo, Pablo & Núñez, Fernando & Usabiaga, Carlos, 2014. "An empirical approach on labour segmentation. Applications with individual duration data," Economic Modelling, Elsevier, vol. 36(C), pages 252-267.
  3. Bruce Meyer & Robert Goerge, 2011. "Errors in Survey Reporting and Imputation and Their Effects on Estimates of Food Stamp Program Participation," Working Papers 11-14, Center for Economic Studies, U.S. Census Bureau.
  4. Seik Kim, . "Economic Assimilation of Foreign-Born Workers in the United States: An Overlapping Rotating Panel Analysis," Working Papers UWEC-2008-19, University of Washington, Department of Economics.
  5. Céspedes, Nikita & Gutiérrez, Ana Paola & Belapatiño, Vanessa, 2013. "Determinantes de la duración del desempleo en una economía con alta informalidad," Working Papers 2013-022, Banco Central de Reserva del Perú.
  6. Álvarez de Toledo, Pablo & Núñez, Fernando & Usabiaga, Carlos, 2013. "Labour Market Segmentation, Clusters, Mobility and Unemployment Duration with Individual Microdata," MPRA Paper 46003, University Library of Munich, Germany.
  7. Dang, Hai-Anh & Lanjouw, Peter, 2013. "Measuring poverty dynamics with synthetic panels based on cross-sections," Policy Research Working Paper Series 6504, The World Bank.
  8. Stephen Bazen & Xavier Joutard & Mouhamadou M. Niang, 2012. "The Duration-Based Measurement of Unemployment: Estimation Issues and an Application to Male-Female Unemployment Differences in France," Working Papers halshs-00793056, HAL.
  9. Bemjamin Villena-Roldan, 2009. "Aggregate Implications of Employer Search and Recruiting Selection," 2009 Meeting Papers 97, Society for Economic Dynamics.
  10. Carlos Usabiaga & Fernando Núñez & Pablo Álvarez de Toledo, 2013. "Segmentación del mercado de trabajo, clusters, movilidad y duración de desempleo con datos individuales," Economic Working Papers at Centro de Estudios Andaluces E2013/02, Centro de Estudios Andaluces.
  11. Seik Kim, . "Sample Attrition in the Presence of Population Attrition," Working Papers UWEC-2009-02, University of Washington, Department of Economics.
  12. Valletta, Robert G., 2013. "House lock and structural unemployment," Labour Economics, Elsevier, vol. 25(C), pages 86-97.
  13. Robert G. Valletta, 2012. "House lock and structural unemployment," Working Paper Series 2012-25, Federal Reserve Bank of San Francisco.
  14. Valletta, Robert G., 2012. "House Lock and Structural Unemployment," IZA Discussion Papers 7002, Institute for the Study of Labor (IZA).

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