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Determinants of Lifetime Unemployment - A Micro Data Analysis with Censored Quantile Regressions

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  • Achim Schmillen

    () (Osteuropa-Institut, Regensburg (Institut for East European Studies))

  • Joachim Möller

    (Institute for Employment Research (IAB))

Abstract

Building on a large administrative micro data set for the time span 1975 - 2004 we look at lifetime unemployment for West German birth cohorts 1950 to 1954. Descriptive evidence shows a highly uneven distribution of unemployment in West Germany - more than 60% of the individuals in our sample were not unemployed for a single day over the better part of their professional career while almost half of the total amount of unemployment fell upon 5% of the individuals covered. We employ censored quantile regressions to explain the amount of individual lifetime unemployment. Explanatory variables are either characteristics of the individual (like education), or of the job (like the wage) or the employer (like the size of the firm) early in the professional career. A particular emphasis is placed on the importance of the occupation: we find that for men working in a disadvantageous occupation at age 25 ceteris paribus leads to a signi cantly higher amount of lifetime unemployment. Educational attainment or the wage earned at age 25 are also related to the amount of men's lifetime unemployment, amongst others. Some of these variables show very interesting patterns when looking at di erent quantiles. For women results are in general less clear-cut.

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Bibliographic Info

Paper provided by Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies) in its series Working Papers with number 275.

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Length: 36
Date of creation: Oct 2009
Date of revision:
Handle: RePEc:ost:wpaper:275

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Keywords: Lifetime unemployment; Censored-Quantile Regressions; Occupations specific human capital;

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References

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  1. Gueorgui Kambourov & Iourii Manovskii, 2009. "Occupational Specificity Of Human Capital," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(1), pages 63-115, 02.
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  9. Buchinsky, Moshe, 1994. "Changes in the U.S. Wage Structure 1963-1987: Application of Quantile Regression," Econometrica, Econometric Society, vol. 62(2), pages 405-58, March.
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  13. Bernd Fitzenberger & Aderonke Osikominu & Robert Völter, 2006. "Imputation Rules to Improve the Education Variable in the IAB Employment Subsample," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 126(3), pages 405-436.
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Cited by:
  1. Pradhan, Jaya Prakash, 2011. "Regional heterogeneity and firms’ innovation: the role of regional factors in industrial R&D in India," MPRA Paper 28096, University Library of Munich, Germany.
  2. Stops, Michael, 2011. "Job Matching on non-separated Occupational Labour Markets," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 49161, Verein für Socialpolitik / German Economic Association.
  3. Tisch, Anita & Tophoven, Silke, 2011. "Erwerbseinstieg und bisheriges Erwerbsleben der deutschen Babyboomerkohorten 1959 und 1965 : Vorarbeiten zu einer Kohortenstudie," IAB-Forschungsbericht 201108, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  4. Stops, Michael, 2012. "Job matching across occupational labour markets," IAB Discussion Paper 201227, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  5. Pradhan, Jaya Prakash, 2010. "R&D strategy of small and medium enterprises in India: Trends and determinants," MPRA Paper 20951, University Library of Munich, Germany.
  6. Münstermann, Leonard & Schneck, Stefan & Wolter, Hans-Jürgen, 2012. "Die Bedeutung des Kurzarbeitergeldes im Mittelstand," IfM-Materialien 215, IfM - Institut für Mittelstandsforschung Bonn.

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