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Unequal Chances on the Transitional Labor Market: The Case of the Netherlands

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  • Bijwaard, Govert

    ()
    (NIDI - Netherlands Interdisciplinary Demographic Institute)

  • Veenman, Justus

    ()
    (Erasmus University Rotterdam)

Abstract

The emergence of a transitional labor market offers new opportunities to workers, but at the same time bears the risk of (new) inequalities. This paper deals with unequal chances on the transitional labor market in the Netherlands, in particular for workers from the four largest immigrant groups: Turks, Moroccans, Surinamese and Antilleans. The data used are from the SPVA, the survey `Social Position and Use of Public Utilities by Migrants' for the years 1998 and 2002. These are based on stock sampling. Since for some individuals labor market transitions occur at a very low rate, these individuals may stay in their current state till they reach the retirement age of 65. We estimate hazard rate models that account for both the stock-sampling and the possible maximum duration for the transitions from unemployment, household care and disability to employment. Then we decompose the difference in expected duration between the immigrant groups and the Dutch into the contribution of differences in observable characteristics, coefficient estimates and baseline hazard parameters. The main results of the analyses are that unequal chances exist, but to a different degree for the various groups and with variations per transition type.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2908.

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Length: 37 pages
Date of creation: Jul 2007
Date of revision:
Handle: RePEc:iza:izadps:dp2908

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Keywords: Oaxaca-Blinder decomposition; transitional labor market; duration;

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  1. John Ham & Jan Svejnar & Katherine Terrell, 1998. "Unemployment and the Social Safety Net During Transitions to a Market Economy: Evidence from the Czech and Slovak Republic," William Davidson Institute Working Papers Series 169, William Davidson Institute at the University of Michigan.
  2. Heckman, James J. & Singer, Burton, 1984. "Econometric duration analysis," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 63-132.
  3. Govert Bijwaard & Geert Ridder, 1998. "Correcting for Selective Compliance in a Re-Employment Bonus Experiment," Economics Working Paper Archive 412, The Johns Hopkins University,Department of Economics.
  4. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  5. Nickell, Stephen J, 1979. "Estimating the Probability of Leaving Unemployment," Econometrica, Econometric Society, vol. 47(5), pages 1249-66, September.
  6. Schmid, Günther, 2001. "Die Zukunft der Erwerbsarbeit: Thesen und Perspektiven für Mecklenburg-Vorpommern," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 01-205, Social Science Research Center Berlin (WZB).
  7. Murphy, Anthony, 1996. "A piecewise-constant hazard-rate model for the duration of unemployment in single-interview samples of the stock of unemployed," Economics Letters, Elsevier, vol. 51(2), pages 177-183, May.
  8. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
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Cited by:
  1. Bijwaard, G.E., 2006. "A note on stock sampling and maximum duration," Econometric Institute Research Papers EI 2006-22, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
  2. Bijwaard, G.E., 2007. "Modelling the time on unemployment insurance benefits," Econometric Institute Research Papers EI 2007-28, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.

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