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A Note on Estimating Unemployment Duration

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  • P. K. Trivedi

Abstract

A focal point of a number of recent studies of unemployment duration has been the estimation of the unobserved average completed duration (ACD) of an unemployment spell using groped data on observed incomplete spells. Both parametric and non‐parametric methods are available. This note compares the assumptions underlying the two approaches and argues for the use of a non‐parametric estimator, specifically the Kaplan‐Meier estimator, on grounds of its use of the weaker assumptions. In an actual application of the Kaplan‐Meier estimator to some data from the Australian Labour Force Survey a Number of problems are experienced due to the fact that the estimator is intended for data in a life table format. The note briefly discusses the resolution of these problems and related statistical issues.

Suggested Citation

  • P. K. Trivedi, 1985. "A Note on Estimating Unemployment Duration," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 18(1), pages 37-41, March.
    • Handle: RePEc:bla:ausecr:v:18:y:1985:i:1:p:37-41
    DOI: 10.1111/j.1467-8462.1985.tb00478.x
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