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Does unemployment cause unemployment? Micro evidence from Norway

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  • Knut Roed
  • Oddbjorn Raaum
  • Harald Goldstein

Abstract

The way that unemployment duration affects employment prospects, is investigated using Norwegian micro transition data encompassing detailed accounts of 14 807 unemployed adults. A generalized non-proportional Weibull model is estimated, with two possible exits from the unemployment pool: a job or a labour force exit. On average the probability of obtaining a job is fairly constant at the individual level, while the probability of exiting the labour force increases significantly as unemployment duration is prolonged. For some particular groups of unemployed, there is also a marked negative duration dependence in the probability of obtaining a job.

Suggested Citation

  • Knut Roed & Oddbjorn Raaum & Harald Goldstein, 1999. "Does unemployment cause unemployment? Micro evidence from Norway," Applied Economics, Taylor & Francis Journals, vol. 31(10), pages 1207-1218.
    • Handle: RePEc:taf:applec:v:31:y:1999:i:10:p:1207-1218
    DOI: 10.1080/000368499323427
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    References listed on IDEAS

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    1. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
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    1. Gustavo A. Crespi & Aldo Geuna & Lionel J. J. Nesta, 2006. "Labour Mobility of Academic Inventors. Career Decision and Knowledge Transfer," SPRU Working Paper Series 139, SPRU - Science Policy Research Unit, University of Sussex Business School.
    2. José Arranz & Carlos García-Serrano, 2014. "Duration and Recurrence of Unemployment Benefits," Journal of Labor Research, Springer, vol. 35(3), pages 271-295, September.
    3. Ignacio Tavares ARAUJO JR & Paulo AGUIAR DO MONTE, 2010. "The Wage Cost of Unemployment Duration: Evidences for the Brazilian Economy," EcoMod2010 259600010, EcoMod.
    4. Luis Alberiko Gil-Alana & Pedro Garcia-del-Barrio, 2006. "New Revelations about Unemployment Persistence in Spain," Faculty Working Papers 10/06, School of Economics and Business Administration, University of Navarra.
    5. José Arranz & Olga Cantó, 2012. "Measuring the effect of spell recurrence on poverty dynamics—evidence from Spain," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(2), pages 191-217, June.
    6. Roed, Knut & Zhang, Tao, 2005. "Unemployment duration and economic incentives--a quasi random-assignment approach," European Economic Review, Elsevier, vol. 49(7), pages 1799-1825, October.
    7. Knut Røed & Tao Zhang, 2002. "A note on the Weibull distribution and time aggregation bias," Applied Economics Letters, Taylor & Francis Journals, vol. 9(7), pages 469-472.
    8. Pål Børing, 2010. "Gamma Unobserved Heterogeneity and Duration Bias," Econometric Reviews, Taylor & Francis Journals, vol. 29(1), pages 1-19.

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