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Unemployment and under-employment: the case of Switzerland

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Author Info
Dragana Djurdjevic ()

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Abstract

I analyze the effect of unemployment on subsequent employment history for Switzerland. Using administrative panel data from the unemployment insurance system and the social security databases, I estimate a discrete time hazard model for the exit from the different labor market states: unemployment, employment characterized by either earnings losses, gains or relatively stable earnings, and out-of-the labor force. I find that having previously experienced unemployment increases the risk of persistent unemployment. A further analysis based on personal characteristics such as gender, age, foreign citizenship and qualification permits to identify two profiles of unemployed persons. The “higher-risk” unemployed, namely the female, foreign and less skilled workers are prone to remain trapped in bad situations or to experience employment instability. On the contrary, the male, younger and skilled workers are more likely to exit from unemployment and if they experience earnings losses, it is more for transitory periods.

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Publisher Info
Paper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2003 with number 2003-18.

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Length: 78 pages
Date of creation: Nov 2003
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Handle: RePEc:usg:dp2003:2003-18

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Related research
Keywords: exclusion; wages; discrete time hazard model;

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Find related papers by JEL classification:
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search

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References listed on IDEAS
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    Other versions:
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    Other versions:
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    Other versions:
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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. Agne Lauzadyte, 2007. "A Statistical Programme Assignment Model," Economics Working Papers 2007-18, School of Economics and Management, University of Aarhus. [Downloadable!]
  2. Patrick A. Puhani, 2005. "Relative Supply and Demand for Skills in Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 141(IV), pages 555-584, December. [Downloadable!]
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