Unemployment duration, job search and labour market segmentation Evidence from urban Ethiopia
Although it is a common theoretical assumption that the chances to find a job fall with time in unemployment, this is not systematically confirmed by empirical evidence, and there is no evidence for developing countries. We develop a framework that allows us to test the four major explanations why we may observe non-negative duration dependence while genuine duration dependence is negative: financial support for the unemployed, active labour market policies, a change in the economy over time, and segmentation of the labour market into ‘good’ and ‘bad’ jobs. Using data for urban Ethiopia we observe a constant hazard while controlling for unobserved heterogeneity, and find that labour market segmentation is the only convincing explanation.
|Date of creation:||2008|
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- 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.
- Gerard J, Van den Berg & Bas Van der Klmaauw, 1998. "Combining Micro and Macro Unemployment Duration Data," Working Papers 98-58, Centre de Recherche en Economie et Statistique.
- van den Berg, Gerard J. & van der Klaauw, Bas, 2000. "Combining Micro and Macro Unemployment Duration Data," IZA Discussion Papers 109, Institute for the Study of Labor (IZA).
- Gerard J. van den Berg & Bas van der Klaauw, 1998. "Combining Micro and Macro Unemployment Duration Data," Tinbergen Institute Discussion Papers 98-098/3, Tinbergen Institute.
- van den Berg, Gerard J & van der Klaauw, Bas, 2000. "Combining Micro and Macro Unemployment Duration Data," CEPR Discussion Papers 2494, C.E.P.R. Discussion Papers.
- Alba-Ramirez, Alfonso & Arranz, Jose M. & Munoz-Bullon, Fernando, 2007. "Exits from unemployment: Recall or new job," Labour Economics, Elsevier, vol. 14(5), pages 788-810, October.
- Muñoz-Bullón, Fernando & Arranz, José M. & Alba, Alfonso, 2006. "Exits from unemployment : recall or new job," DEE - Working Papers. Business Economics. WB wb060301, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
- Van den Berg, Gerard J., 2001. "Duration models: specification, identification and multiple durations," Handbook of Econometrics,in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 55, pages 3381-3460 Elsevier.
- Van den Berg, Gerard J., 2000. "Duration Models: Specification, Identification, and Multiple Durations," MPRA Paper 9446, University Library of Munich, Germany.
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