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Estimating Labour Market Transitions and Continuations using Repeated Cross Sectional Data

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  • Pierre Brochu

    (Department of Economics, University of Ottawa)

Abstract

This paper proposes a new approach for estimating transition (or continuation) probabilities using repeated cross sectional data. A cross sectional method is necessary when good panel data are not available. The proposed approach is uniquely designed for repeated cross-sectional analysis, and as a result, the identifying assumptions are relatively mild and easy to interpret. Canadian Labour Force data and U.S. Current Population Survey data are used to compare proposed and existing approaches. I find that the choice of method can make a difference at the inference stage.

Suggested Citation

  • Pierre Brochu, 2007. "Estimating Labour Market Transitions and Continuations using Repeated Cross Sectional Data," Working Papers 0703E, University of Ottawa, Department of Economics.
    • Handle: RePEc:ott:wpaper:0703e
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    File URL: http://sciencessociales.uottawa.ca/economics/sites/socialsciences.uottawa.ca.economics/files/0703E.pdf
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    References listed on IDEAS

    as
    1. Guell, Maia & Hu, Luojia, 2006. "Estimating the probability of leaving unemployment using uncompleted spells from repeated cross-section data," Journal of Econometrics, Elsevier, vol. 133(1), pages 307-341, July.
    2. Moffitt, Robert, 1993. "Identification and estimation of dynamic models with a time series of repeated cross-sections," Journal of Econometrics, Elsevier, vol. 59(1-2), pages 99-123, September.
    3. Neumark, David & Polsky, Daniel & Hansen, Daniel, 1999. "Has Job Stability Declined Yet? New Evidence for the 1990s," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 29-64, October.
    4. Stephen R. G. Jones & W. Craig Riddell, 1999. "The Measurement of Unemployment: An Empirical Approach," Econometrica, Econometric Society, vol. 67(1), pages 147-162, January.
    5. Andrew Heisz, 2005. "The evolution of job stability in Canada: trends and comparisons with U.S. results," Canadian Journal of Economics, Canadian Economics Association, vol. 38(1), pages 105-127, February.
    6. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
    7. Ureta, Manuelita, 1992. "The Importance of Lifetime Jobs in the U.S. Economy, Revisited," American Economic Review, American Economic Association, vol. 82(1), pages 322-335, March.
    8. Andrew Heisz, 2005. "The evolution of job stability in Canada: trends and comparisons with U.S. results," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(1), pages 105-127, February.
    9. Pierre Brochu, 2013. "The source of the new Canadian job stability patterns," Canadian Journal of Economics, Canadian Economics Association, vol. 46(2), pages 412-440, May.
    10. Baker, Michael, 1992. "Unemployment Duration: Compositional Effects and Cyclical Variability," American Economic Review, American Economic Association, vol. 82(1), pages 313-321, March.
    11. Diebold, Francis X & Neumark, David & Polsky, Daniel, 1997. "Job Stability in the United States," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 206-233, April.
    12. Kenneth A. Swinnerton & Howard Wial, 1995. "Is Job Stability Declining in the U.S. Economy?," ILR Review, Cornell University, ILR School, vol. 48(2), pages 293-304, January.
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    Cited by:

    1. Pierre Brochu, 2013. "The source of the new Canadian job stability patterns," Canadian Journal of Economics, Canadian Economics Association, vol. 46(2), pages 412-440, May.
    2. Visintin, Stefano & Elvira, Marta & Rodríguez-Lluesma, Carlos, 2013. "Job (in)stability in the European Long-Term Care Workforce," IESE Research Papers D/1078, IESE Business School.

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    More about this item

    Keywords

    Repeated cross section data; Duration analysis; Employment;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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