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Specification Tests for the Competing Risks Duration Model: An Application to Unemployment Duration and Sectoral Movement

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  • Pudney, Stephen
  • Thomas, Jonathan

Abstract

This study develops three specification tests for the competing risks duration model. They include a general test for misspecification and specific tests for heterogeneity and defective risk distributions. The last two tests involve null hypotheses located on the boundary of the parameter space and the authors consider alternative formulations of the score test to take account of this. The tests are applied to models of unemployment duration in which displaced job seekers may become reemployed in the preunemployment industry or switch industries. Copyright 1995 by Blackwell Publishing Ltd

Suggested Citation

  • Pudney, Stephen & Thomas, Jonathan, 1995. "Specification Tests for the Competing Risks Duration Model: An Application to Unemployment Duration and Sectoral Movement," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(3), pages 323-347, August.
  • Handle: RePEc:bla:obuest:v:57:y:1995:i:3:p:323-47
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    Cited by:

    1. Melkersson, Maria, 1999. "Unemployment duration and heterogenous search behavior among Swedish disabled workers," Working Paper Series 1999:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    2. John T. Addison & Pedro Portugal, 2003. "Unemployment Duration Competing and Defective Risks," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
    3. Eyal, Yonatan & Beenstock, Michael, 2008. "Sign reversal in LIVE treatment effect estimates: The effect of vocational training on unemployment duration," Labour Economics, Elsevier, vol. 15(5), pages 1102-1125, October.
    4. Virve Ollikainen & Tomi Kyyrä, 2006. "To Search or Not to Search? The Effects of UI Benefit Extension for the Elderly Unemployed," Discussion Papers 400, Government Institute for Economic Research Finland (VATT).
    5. Daniel Himarios, 2000. "How Forward Looking Are Consumers? Further Evidence for the United States," Southern Economic Journal, John Wiley & Sons, vol. 66(4), pages 991-1000, April.
    6. Kaiser, Ulrich & Szczesny, Andrea, 2000. "Einfache ökonometrische Verfahren für die Kreditrisikomessung," CoFE Discussion Papers 00/28, University of Konstanz, Center of Finance and Econometrics (CoFE).
    7. Kyyrä, Tomi & Ollikainen, Virve, 2008. "To search or not to search? The effects of UI benefit extension for the older unemployed," Journal of Public Economics, Elsevier, vol. 92(10-11), pages 2048-2070, October.
    8. Fabrizia Mealli & Stephen Pudney, "undated". "Applying Heterogeneous Transition Models in Labour Economics: The Role of Youth Training in labour Market transitions," Discussion Papers in Public Sector Economics 99/5, Division of Economics, School of Business, University of Leicester.

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