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An econometric analysis of labour market transitions using discrete and tenure data

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  • Magnac, Thierry
  • Robin, Jean-Marc

Abstract

This paper is devoted to the estimation of models of transitions between labour market states using data collected at discrete dates as is an ordinary longitudinal survey. The innovative feature of the paper is the use of ‘tenure' information in conjunction with point sample information on the state occupied to identify and efficiently estimate the parameters of a homogeneous Markov process. It is shown that using simultaneously tenure and state records allows full identification of the model and therefore that within- and between-status mobility can be distinguished. This dual type of information can be exploited to design a test of the Markov assumption. An empirical application on data drawn from a balanced male subsample of the 1986 to 1988 issues of the French Labour Force Survey is presented.
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  • Magnac, Thierry & Robin, Jean-Marc, 1994. "An econometric analysis of labour market transitions using discrete and tenure data," Labour Economics, Elsevier, vol. 1(3-4), pages 327-346, September.
    • Handle: RePEc:eee:labeco:v:1:y:1994:i:3-4:p:327-346
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    1. Jean-Pierre Florens & Denis Fougère & Thierry Kamionka & Michel Mouchart, 1994. "La modélisation économétrique des transitions individuelles sur le marché du travail," Économie et Prévision, Programme National Persée, vol. 116(5), pages 181-217.
    2. Bosch, Mariano & Maloney, William F., 2010. "Comparative analysis of labor market dynamics using Markov processes: An application to informality," Labour Economics, Elsevier, vol. 17(4), pages 621-631, August.
    3. M. Beffy & É. Coudin & R. Rathelot, 2008. "Who is confronted to insecure labor market histories? Some evidence based on the French labor market transition," Documents de Travail de l'Insee - INSEE Working Papers g2008-10, Institut National de la Statistique et des Etudes Economiques.
    4. Giuseppe Tattara & Marco Valentini, 2012. "Labour Market Segmentation, Flexibility and Precariousness in the Italian North East," AIEL Series in Labour Economics, in: Tindara Addabbo & Giovanni Solinas (ed.), Non-Standard Employment and Quality of Work, chapter 0, pages 149-172, Springer.
    5. Galiani, Sebastian & Hopenhayn, Hugo A., 2003. "Duration and risk of unemployment in Argentina," Journal of Development Economics, Elsevier, vol. 71(1), pages 199-212, June.
    6. Berg, Gerard J. van den & Klaauw, Bas van der, 1998. "Combining micro and macro unemployment data," Serie Research Memoranda 0041, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    7. van den Berg, Gerard J. & van der Klaauw, Bas, 2001. "Combining micro and macro unemployment duration data," Journal of Econometrics, Elsevier, vol. 102(2), pages 271-309, June.
    8. Martínez-Granado, Maite, 1998. "Self-employment and labour market transitions: a multiple state model," UC3M Working papers. Economics 4159, Universidad Carlos III de Madrid. Departamento de Economía.
    9. Bontemps, Christian & Robin, Jean-Marc & Berg, Gerard J. van den, 1998. "An empirical equilibrium job search model with continuously distributed heterogeneity of workers' opportunity costs of employment and firms productivities, and search on the job," Serie Research Memoranda 0002, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    10. Dominique Goux, 2010. "L’enquête Formation et Qualification Professionnelle : une source inépuisable pour la recherche en sciences sociales," Économie et Statistique, Programme National Persée, vol. 431(1), pages 3-11.
    11. Tattara, Giuseppe & Volpe, Mario, 1999. "Why leave wage work and become self-employed ? Independence, earnings or unemployment," MPRA Paper 10780, University Library of Munich, Germany.
    12. Hugo Hopenhayn, 2004. "Labor Market Policies and Employment Duration. The Effects of Labor Market Reform in Argentina," NBER Chapters, in: Law and Employment: Lessons from Latin America and the Caribbean, pages 497-516, National Bureau of Economic Research, Inc.

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