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Is a Risk Index Approach to Unemployment Possible?

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  • Anh T. Le
  • Paul W. Miller

Abstract

This paper examines the ways that productivity, personal characteristics such as birthplace and gender, structural factors and labour market history impact on the distribution of the burden of unemployment. It is shown that labour market history is a major explanator of unemployment outcomes in the Australian labour market. The results from the empirical analyses of unemployment outcomes are used to identify individuals at risk of being unemployed. When individuals classified as at risk of being unemployed are followed through time, it is found that they spend considerable time looking for work and have short working spells. This suggests a risk index approach may have considerable merit as a way of identifying the relative difficulty individuals experience in the labour market.

Suggested Citation

  • Anh T. Le & Paul W. Miller, 2001. "Is a Risk Index Approach to Unemployment Possible?," The Economic Record, The Economic Society of Australia, vol. 77(236), pages 51-70, March.
    • Handle: RePEc:bla:ecorec:v:77:y:2001:i:236:p:51-70
    DOI: 10.1111/1475-4932.00004
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    Cited by:

    1. Jeff Borland & Yi-Ping Tseng, 2007. "Does a Minimum Job Search Requirement Reduce Time on Unemployment Payments? Evidence from the Jobseeker Diary in Australia," ILR Review, Cornell University, ILR School, vol. 60(3), pages 357-378, April.
    2. Jeff Borland & David Johnston, 2010. "How Does a Worker's Labour Market History Affect Job Duration?," Melbourne Institute Working Paper Series wp2010n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.

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