Explaining Unemployment Duration in Australia
What influences the probability that someone will leave unemployment? Informed by a search-theoretic framework and allowing for exits to not in the labour force and employment, I examine what influences the probability that somebody will leave unemployment. The unemployment data used are derived from the retrospective work history information from the first two waves of the Household, Income and Labour Dynamics in Australia Survey. I find that variables that increase wage offers and lower reservation wages are associated with shorter durations of unemployment and that exit rates from unemployment appear to remain steady initially with duration before declining relatively sharply.
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- Arulampalam, Wiji & Stewart, Mark B, 1995. "The Determinants of Individual Unemployment Durations in an Era of High Unemployment," Economic Journal, Royal Economic Society, vol. 105(429), pages 321-32, March.
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CEPR Discussion Papers
2500, C.E.P.R. Discussion Papers.
- Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
- Jeff Borland, 2000. "Disaggregated Models of Unemployment in Australia," Melbourne Institute Working Paper Series wp2000n16, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Brooks, Clive & Volker, Paul, 1986. "The Probability of Leaving Unemployment: The Influence of Duration, Destination and Demographics," The Economic Record, The Economic Society of Australia, vol. 62(178), pages 296-309, September.
- Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
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