How many labour force states? An analysis based on the British Household Panel Survey (BHPS)
AbstractThe motivation of this paper is to investigate the characteristics of the British labour force, using data from the BHPS (British Household Panel Survey). The goal is to examine whether there are statistically significant differences between the unemployed and non participants, as well as inside each of the two groups, considering their transitions in the job market. Using logistic regression for a pooled cross section-time series sample of employed as well as non employed persons, 3 different Out of Work subgroups are identified: Seeking Out of Work, Attached Out of Work, and Voluntary Out of Work. The first group can be broadly assimilated to the official definition of unemployment, ILO unemployment, while all the others are usually classified as economically inactive. Nonetheless, the last two groups are characterised by significantly different transition rates, showing a behaviourally distinct attitude in their labour market dynamics. This result points out that the aggregate non employment has several dimensions, which are not caught by the distinction between unemployment and economic inactivity, and should be accounted for by policy makers and researchers.
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Bibliographic InfoPaper provided by D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy in its series Discussion Papers with number 14_2006.
Date of creation: 15 Jul 2006
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inactivity; attachment; transition probabilities.;
Other versions of this item:
- Elisabetta Marzano, 2006. "How Many Labour Force States? An Analysis Based on the British Household Panel Survey (BHPS)," LABOUR, CEIS, vol. 20(2), pages 237-254, 06.
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
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