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Reemployment Rates over the Life Course: Is there still Hope after Late Career Job Loss?

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Author Info
Katharina Frosch () (Rostock Centre for the Study of Demographic Change, Germany)

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Abstract

The labor market situation for elderly job searchers is more difficult than for their younger counterparts. To identify patterns in the reemployment of the elderly, we analyze the employment histories of about 113.000 male job searchers in West-Germany. The analysis is based on a hazard rate model with piecewise constant intensities. We focus on age-specific reemployment rates. Individual characteristics, labor market indicators as well as the influence of the previous employment history on reemployment are accounted for. As expected, reemployment rates decline with age. Between 1975 and 1995, the negative impact of age on reemployment chances increases significantly. The obsolescence of human capital seems to play a decisive role for reemployment, especially for engineering occupations: From age 50 on, the negative age effect is significantly stronger than for other occupations.

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File URL: http://www.wiwi.uni-rostock.de/fileadmin/Institute/VWL/VWL-Institut/RePEc/pdf/wp064thuenen.pdf
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File Function: December 2006
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Publisher Info
Paper provided by University of Rostock, Institute of Economics, Germany in its series Thuenen-Series of Applied Economic Theory with number 64.

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Length: 32 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:ros:wpaper:64

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Related research
Keywords: late career job loss; reemployment; hazard rate models; elderly engineers;

Other versions of this item:

Find related papers by JEL classification:
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Wilke, Ralf A., 2004. "New Estimates of the Duration and Risk of Unemployment for West-Germany," ZEW Discussion Papers 04-26, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  2. Jana Bruder & Katharina Frosch, 2006. "Foreign Nationality and Age - A Double Drawback for Reemployment in Germany?," Thuenen-Series of Applied Economic Theory 63, University of Rostock, Institute of Economics, Germany. [Downloadable!]
  3. Axel Börsch-Supan & Ismail Düzgün & Matthias Weiss, 2005. "Altern und Produktivität: Zum Stand der Forschung," MEA discussion paper series 05073, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
    Other versions:
  4. Trivedi, P K & Alexander, J N, 1989. "Reemployment Probability and Multiple Unemployment Spells: A Partial-Likelihood Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 7(3), pages 395-401, July.
  5. Petrongolo, Barbara, 2001. "Reemployment Probabilities and Returns to Matching," Journal of Labor Economics, University of Chicago Press, vol. 19(3), pages 716-41, July. [Downloadable!] (restricted)
  6. Bruce K. Fallick, 1989. "Unemployment Insurance and the Rate of Re-Employment of Displaced Workers," UCLA Economics Working Papers 550, UCLA Department of Economics. [Downloadable!]
  7. Kletzer, Lori G, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-36, Winter. [Downloadable!] (restricted)
  8. van den Berg, Gerard J, 1990. "Search Behaviour, Transitions to Nonparticipation and the Duration of Unemployment," Economic Journal, Royal Economic Society, vol. 100(402), pages 842-65, September. [Downloadable!] (restricted)
  9. Uhlendorff, Arne & Zimmermann, Klaus F, 2006. "Unemployment Dynamics among Migrants and Natives," CEPR Discussion Papers 5872, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  10. Stock, James H & Wise, David A, 1990. "Pensions, the Option Value of Work, and Retirement," Econometrica, Econometric Society, vol. 58(5), pages 1151-80, September. [Downloadable!] (restricted)
    Other versions:
  11. Lüdemann, Elke & Wilke, Ralf A. & Zhang, Xuan, 2004. "Censored Quantile Regressions and the Length of Unemployment Periods in West Germany," ZEW Discussion Papers 04-57, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  12. Fallick, Bruce Chelimsky, 1991. "Unemployment Insurance and the Rate of Re-employment of Displaced Workers," The Review of Economics and Statistics, MIT Press, vol. 73(2), pages 228-35, May. [Downloadable!] (restricted)
  13. McGregor, Alan, 1978. "Unemployment Duration and Re-Employment Probability," Economic Journal, Royal Economic Society, vol. 88(352), pages 693-706, December. [Downloadable!] (restricted)
  14. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-79, June. [Downloadable!] (restricted)
  15. Chan, Sewin & Stevens, Ann Huff, 2001. "Job Loss and Employment Patterns of Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 484-521, April. [Downloadable!] (restricted)
  16. Jennifer Hunt, 2004. "Convergence and determinants of non-employment durations in Eastern and Western Germany," Journal of Population Economics, Springer, vol. 17(2), pages 249-266, 06. [Downloadable!] (restricted)
  17. Barry T. Hirsch & David A. Macpherson & Melissa A. Hardy, 2000. "Occupational age structure and access for older workers," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 53(3), pages 401-418, April.
  18. Hunt, Jennifer, 1995. "The Effect of Unemployment Compensation on Unemployment Duration in Germany," Journal of Labor Economics, University of Chicago Press, vol. 13(1), pages 88-120, January. [Downloadable!] (restricted)
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  19. Hutchens, Robert, 1986. "Delayed Payment Contracts and a Firm's Propensity to Hire Older Workers," Journal of Labor Economics, University of Chicago Press, vol. 4(4), pages 439-57, October. [Downloadable!] (restricted)
  20. Narendranathan, Wiji & Nickell, Stephen, 1985. "Modelling the process of job search," Journal of Econometrics, Elsevier, vol. 28(1), pages 29-49, April. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jana Bruder & Katharina Frosch, 2006. "Foreign Nationality and Age - A Double Drawback for Reemployment in Germany?," Thuenen-Series of Applied Economic Theory 63, University of Rostock, Institute of Economics, Germany. [Downloadable!]
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