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Job seeker's allowance in Great Britain: How does the regional labour market affect the duration until job finding?

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Author Info

  • Philip Ball
  • Ralf Wilke

Abstract

Employing a large individual-level administrative dataset from Great Britain, covering the period 1999-2007, we analyse the factors influencing the length of unemployment benefits claimant periods with subsequent transition to re-employment. To this end, this individual-level data is merged with a group of regional indicators to control for relevant regional labour market characteristics. From a methodological point of view, we adopt a flexible censored quantile regression approach to estimating conditional re-employment hazards. Our results indicate that the individual characteristics of an unemployed person are generally more im- portant than the regional labour market conditions. However, regional labour supply and demand conditions are important determinants for the length of unemployment compensation claim periods. Our analysis provides evidence that large cities such as London and Birmingham provide the worse local labour market conditions for job seekers allowance recipients, while remote regions like the Shetland islands perform among the best.

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Bibliographic Info

Paper provided by University of Nottingham, School of Economics in its series Discussion Papers with number 09/03.

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Handle: RePEc:not:notecp:09/03

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Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
Phone: (44) 0115 951 5620
Fax: (0115) 951 4159
Web page: http://www.nottingham.ac.uk/economics/
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Related research

Keywords: benefit duration; quantile regression; hazard rate.;

References

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  1. Angrist, Joshua D. & Krueger, Alan B., 1999. "Empirical strategies in labor economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366 Elsevier.
  2. Pedro Portugal, 2007. "U.S. Unemployment Duration: Has Long Become Longer or Short Become Shorter?," Working Papers 2007/17, Czech National Bank, Research Department.
  3. Pierre Cahuc & André Zylberberg, 2004. "Labor Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 026203316x, January.
  4. Mary A. Silles, 2007. "The returns for education for the United Kingdom," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 391-413, November.
  5. Arulampalam, Wiji, 2000. "Is Unemployment Really Scarring? Effects of Unemployment Experiences on Wages," IZA Discussion Papers 189, Institute for the Study of Labor (IZA).
  6. Sarah Brown & John Sessions, 1997. "A Profile of UK Unemployment: Regional versus Demographic Influences," Regional Studies, Taylor & Francis Journals, vol. 31(4), pages 351-366.
  7. Arntz, Melanie & Wilke, Ralf A., 2006. "Unemployment duration in Germany: individual and regional determinants of local job finding, migration and subsidized employment," ZEW Discussion Papers 06-92, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Adda, Jérôme & Costa Dias, Mònica & Meghir, Costas & Sianesi, Barbara, 2007. "Labour market programmes and labour market outcomes: a study of the Swedish active labour market interventions," Working Paper Series 2007:27, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  9. Melanie Arntz & Ralf A. Wilke, 2007. "An application of cartographic area interpolation to German administrative data," AStA Advances in Statistical Analysis, Springer, vol. 91(2), pages 159-180, August.
  10. Ralf Wilke, . "Unemployment Duration in the United Kingdom: An Incomplete Data Approach," Discussion Papers 09/02, University of Nottingham, School of Economics.
  11. William Collier, 2005. "Unemployment duration and individual heterogeneity: a regional study," Applied Economics, Taylor & Francis Journals, vol. 37(2), pages 133-153.
  12. Bilias, Yannis & Chen, Songnian & Ying, Zhiliang, 2000. "Simple resampling methods for censored regression quantiles," Journal of Econometrics, Elsevier, vol. 99(2), pages 373-386, December.
  13. Powell, James L., 1984. "Least absolute deviations estimation for the censored regression model," Journal of Econometrics, Elsevier, vol. 25(3), pages 303-325, July.
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Cited by:
  1. Philip Ball, . "Mixed Signals: to what extent does male wage scarring vary with the characteristics of the local labour market in which unemployment was experienced?," Discussion Papers 11/13, University of Nottingham, School of Economics.

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