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Unemployment duration in poor developing economies: evidence from urban Ethiopia

Author

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  • Seife Dendir

    (Radford University, USA)

Abstract

The literature investigating unemployment duration in developing countries is rather scarce. In this paper, parametric and semi-parametric models are estimated to analyze the determinants of unemployment duration in a developing country context. Data from a nationally representative urban household survey in Ethiopia are used. The data reveal that mean unemployment duration in urban Ethiopia is very long—3 years for completed spells and 4.7 years for incomplete spells. The econometric evidence shows that the hazard rate into employment is significantly affected by age, marital status, highest level of education attained, location and support mechanism while unemployed. Ethnic background and gender are not found to be important determinants. Appropriate tests show that these results are not driven by unobservable heterogeneities. The nonparametric hazard function and the baseline hazard retrieved from the semi-parametric estimation reveal a unique shape with alternating signs of duration dependence across a range of years.

Suggested Citation

  • Seife Dendir, 2006. "Unemployment duration in poor developing economies: evidence from urban Ethiopia," Journal of Developing Areas, Tennessee State University, College of Business, vol. 40(1), pages 181-201, September.
    • Handle: RePEc:jda:journl:vol.40:year:2006:issue1:pp:181-201
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    File URL: http://muse.jhu.edu/journals/jda/summary/v040/40.1dendir.html
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    Citations

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    Cited by:

    1. Aysit Tansel & H. Mehmet Taşçı, 2010. "Hazard Analysis of Unemployment Duration by Gender in a Developing Country: The Case of Turkey," LABOUR, CEIS, vol. 24(4), pages 501-530, December.
    2. Howard Bodenhorn & Carolyn Moehling & Gregory N. Price, 2012. "Short Criminals: Stature and Crime in Early America," Journal of Law and Economics, University of Chicago Press, vol. 55(2), pages 393-419.
    3. Opoku Nyarko, Christopher & Baah-Boateng, William & Nketiah-Amponsah, Edward, 2014. "The Effect of Search Effort on the transition from Unemployment to Work: Evidence from a Cross Section of Ghanaian Formal Sector Workers," MPRA Paper 109691, University Library of Munich, Germany.
    4. Murali Kuchibhotla & Peter F. Orazem & Sanjana Ravi, 2020. "The scarring effects of youth joblessness in Sri Lanka," Review of Development Economics, Wiley Blackwell, vol. 24(1), pages 269-287, February.
    5. Catalina Jordi & Miguel Manjón, 2014. "The determinants of urban (un)employment duration: evidence from Barcelona," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 515-556, September.
    6. Karthikeya Naraparaju, 2017. "Unemployment Spells in India: Patterns, Trends, and Covariates," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 60(4), pages 625-646, December.
    7. Kuchibhotla, Murali, 2013. "Three essays in development economics," ISU General Staff Papers 201301010800004461, Iowa State University, Department of Economics.
    8. Robert Hill & Kezia Lilenstein & Amy Thornton, 2020. "Job spells in an emerging market: Evidence from apartheid and post-apartheid South Africa," WIDER Working Paper Series wp-2020-27, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Urban; Unemployment Duration; Hazard Rate; Semi-parametric Estimation; Africa; Ethiopia.;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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