The Determinants of Unemployment Duration by Gender in Finland
This paper models unemployment durations for men and women in Finland using a nationally representative data set from 1997. We begin with a baseline model where durations are modelled using a single risk discrete time hazard model. These estimations are extended to a piecewise constant hazard model and to a competing risks model. The results indicate that young children as well as foreign citizenship have a prolonging effect on female unemployment periods. Education appears as a highly positive factor in reducing the duration of unemployment, particularly for women. The results also reveal the implications of regional labour market policy, as the propensity to exit unemployment is greatest in rural areas, but mostly explained by exits to active labour market programmes.
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