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Some Micro Evidence on Unemployment Persistence

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  • Winter-Ebmer, Rudolf

Abstract

Hysteresis and persistence models have become increasingly popular in explaining high European unemployment. In this paper, some microeconomic tests are performed to investigate especially the screening hypothesis. Two possible reasons that might explain duration dependent exit rates from unemployment are explored in detail: the influence of employment offices in allocating incoming job referrals and firms' recruitment strategies. In a bivariate framework, employers' and workers' decisions are simultaneously determined. Both models estimated for Austrian data show substantial discrimination against the long-term unemployed by employment office and employer, respectively. Copyright 1991 by Blackwell Publishing Ltd

Suggested Citation

  • Winter-Ebmer, Rudolf, 1991. "Some Micro Evidence on Unemployment Persistence," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(1), pages 27-43, February.
  • Handle: RePEc:bla:obuest:v:53:y:1991:i:1:p:27-43
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    Cited by:

    1. Addison, John T. & Altemeyer-Bartscher, Martin & Kuhn, Thomas, 2010. "The Dilemma of Delegating Search: Budgeting in Public Employment Services," IZA Discussion Papers 5170, Institute for the Study of Labor (IZA).
    2. Amynah Gangji & Robert Plasman, 2008. "Microeconomic analysis of unemployment persistence in Belgium," International Journal of Manpower, Emerald Group Publishing, vol. 29(3), pages 280-298, June.
    3. Ossama Mikhail & Curtis Eberwein & Jagdish Handa, 2005. "Testing for persistence in aggregate and sectoral Canadian unemployment," Applied Economics Letters, Taylor & Francis Journals, vol. 12(14), pages 893-898.
    4. repec:wfo:wstudy:27454 is not listed on IDEAS
    5. Winter-Ebmer, Rudolf, 1996. "Wage curve, unemployment duration and compensating differentials," Labour Economics, Elsevier, vol. 3(4), pages 425-434, December.
    6. Zweimuller, Josef & Winter-Ebmer, Rudolf, 1996. "Manpower Training Programmes and Employment Stability," Economica, London School of Economics and Political Science, vol. 63(249), pages 113-130, February.
    7. Eriksson, Stefan & Gottfries, Nils, 2005. "Ranking of job applicants, on-the-job search, and persistent unemployment," Labour Economics, Elsevier, vol. 12(3), pages 407-428, June.
    8. Ossama Mikhail & Curtis J. Eberwein & Jagdish Handa, 2003. "Testing and Estimating Persistence in Canadian Unemployment," Econometrics 0311004, EconWPA.
    9. repec:eee:labchp:v:3:y:1999:i:pc:p:3085-3139 is not listed on IDEAS

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