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The Duration-Based Measurement of Unemployment. Estimation Issues and an Application to Male-Female Unemployment Differences in France

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  • Stephen Bazen

    () (Aix-Marseille Université, AMSE, Greqam)

  • Xavier Joutard

    () (Aix-Marseille Université, AMSE, Greqam)

  • Mouhamadou M. Niang

    () (Aix-Marseille Université, AMSE, Greqam)

Abstract

This paper examines how unemployment can be measured in normative fashion - taking into account the mean and inequality of spell lengths - and how the extent of unemployment can be estimated from cross section data of the type found in labour force surveys. The issue is not straightforward since in these surveys completed durations of unemployed individuals are not observed yet they constitute the basis for calculating the kind of index that has been proposed to measure the extent of unemployment in a way that goes beyond the unemployment rate. The index proposed by Shorrocks has robust normative foundations and has an equivalent representation in terms of average complete duration and the density of completed durations. Building upon earlier work applied in the United States for estimating the first of these, we present a method that enables the index to be calculated based on an estimate of the density of completed durations. The approach is illustrated in the context of comparing male-female unemployment differences in France, where historically female unemployment has been higher than that of males.

Suggested Citation

  • Stephen Bazen & Xavier Joutard & Mouhamadou M. Niang, 2012. "The Duration-Based Measurement of Unemployment. Estimation Issues and an Application to Male-Female Unemployment Differences in France," AMSE Working Papers 1206, Aix-Marseille School of Economics, France.
  • Handle: RePEc:aim:wpaimx:1206
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    References listed on IDEAS

    as
    1. Guell, Maia & Hu, Luojia, 2006. "Estimating the probability of leaving unemployment using uncompleted spells from repeated cross-section data," Journal of Econometrics, Elsevier, vol. 133(1), pages 307-341, July.
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    Cited by:

    1. Mouhamadou Niang, 2014. "Gender gaps in recurrence and concentration of unemployment: Evidence from youth leaving France’s education system," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-25, December.

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    More about this item

    Keywords

    unemployment measurement; completed duration; synthetic cohort; gender gap.;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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