Subsidised Training and Youth Employment: Distinguishing Unobserved Heterogeneity from State Dependence in Labour Market Histories
Using the 1990-2 wave of the French Labour Force Survey to study the employment histories of young people I consider transitions between six labour market states: employment contracts whether permanent or temporary, unemployment, training, education and non-participation. I use a fixed effect estimator in a dynamic multinomial logit model which can accommodate any form of unobserved heterogeneity in levels. This analysis can be extended to Markov processes of any order. I relate heterogeneity components to individual and family characteristics by using simulated maximum likelihood methods. These procedures allow evaluation of the effects training schemes have on youth employment histories.
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Volume (Year): 110 (2000)
Issue (Month): 466 (October)
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