Unemployment durations of French young people
Using the 1990-1992 wave of the French Labour Force Survey this paper analyzes the effects of different factors on the probability of leaving unemployment of French young people. It also studies duration dependence of the hazard rate while controlling for unobserved heterogeneity separately for men and women. A semi-parametric and two parametric hazard functions have been estimated using grouped duration data. A gamma mixing distribution is used to capture individual unobserved heterogeneity. When the correction for unobserved heterogeneity is not incorporated the model chosen is (for both groups) the Weibull that shows a negative duration dependence. Whenever unobserved heterogeneity is modelled the exponential hazard function (no duration dependence) is retained and again for both populations analyzed. This result seems to suggest that observed true negative duration dependence should be explained more through unobserved heterogeneity than through structural factors, a conclusion to be thought in terms of the mover-stayer paradigm
|Date of creation:||01 Sep 1998|
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