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Explaining Non-Negative Duration Dependence Among the Unemployed

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  • Pieter Serneels

    (Centre for the Study of African Economies)

Abstract

We investigate why we observe non-negative duration dependence among young unemployed men in urban Ethiopia. Assuming that genuine duration dependence is negative, there are five explanations for a non-decreasing hazard: the presence of unemployment benefits, the existence of Active Labour Market Policies, the change in labour demand, segmentation of the labour market, and unemployment as a queuing phenomenon. We test each of these explanations and find that labour market segmentation is the only convincing one. We also establish that genuine duration dependence is indeed negative in the long run.

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Bibliographic Info

Paper provided by EconWPA in its series Development and Comp Systems with number 0409013.

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Length: 46 pages
Date of creation: 15 Sep 2004
Date of revision:
Handle: RePEc:wpa:wuwpdc:0409013

Note: Type of Document - pdf; pages: 46
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Web page: http://128.118.178.162

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Keywords: unemployment; duration; segmented labour markets; urban labour market;

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Cited by:
  1. Pieter Serneels, 2004. "The Nature of Unemployment in Urban Ethiopia," Economics Series Working Papers WPS/2004-01, University of Oxford, Department of Economics.
  2. O'Neill, Donal & Sweetman, Olive, 2012. "The Consequences of Measurement Error when Estimating the Impact of BMI on Labour Market Outcomes," IZA Discussion Papers 7008, Institute for the Study of Labor (IZA).
  3. D. O'Neill & Sweetman. O. & Van de gaer D., 2005. "The Consequences of Non-Classical Measurement Error for Distributional Analysis," Economics, Finance and Accounting Department Working Paper Series n1490205, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.

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