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The Incidence of Unemployment: Identifying Quit and Layoffs


  • Nielsen, H.S.
  • Rosholm, M.


We analyse what determines the incidence of unemployment among Danish employees by estimation of a logit model for becoming unemployed. Our data is incomplete in the sense that we do not observe whether a transition was caused by the person quitting or being laid off, so we apply the EM-algorithm to this problem. The models are extended to account for the panel data structure of the data set by including random effects. We use exclusion restrictions to identify quits and layoffs. We find many quitters among young and old women but only few among men.

Suggested Citation

  • Nielsen, H.S. & Rosholm, M., 1997. "The Incidence of Unemployment: Identifying Quit and Layoffs," Papers 97-15, Centre for Labour Market and Social Research, Danmark-.
  • Handle: RePEc:fth:clmsre:97-15

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    References listed on IDEAS

    1. Mark Gertler, 1988. "Financial structure and aggregate economic activity: an overview," Proceedings, Federal Reserve Bank of Cleveland, pages 559-596.
    2. Greenwald, Bruce & Stiglitz, Joseph E & Weiss, Andrew, 1984. "Informational Imperfections in the Capital Market and Macroeconomic Fluctuations," American Economic Review, American Economic Association, vol. 74(2), pages 194-199, May.
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    Cited by:

    1. Helena Skyt, Nielsen & Verner, Mette, 2003. "Why are Well-educated Women not Full-timers?," Working Papers 03-8, University of Aarhus, Aarhus School of Business, Department of Economics.
    2. Knut R. Wangen & Erik Biørn, 2001. "Prevalence and substitution effects in tobacco consumption: A discrete choice analysis of panel data," Discussion Papers 312, Statistics Norway, Research Department.
    3. Knut Wangen & Erik Biørn, 2006. "How do consumers switch between close substitutes when price variation is small? The case of cigarette types," Spanish Economic Review, Springer;Spanish Economic Association, vol. 8(4), pages 239-253, December.

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    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search


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