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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.

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Paper provided by Centre for Labour Market and Social Research, Danmark- in its series Papers with number 97-15.

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Length: 48 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:clmsre:97-15
Contact details of provider: Postal: Danmark; Centre for Labour Market and Social Research. Science Park Aarhus Wieds Vej 10C, 8000 Aarhus C, Danmark
Phone: +45 8942 2350
Fax: +45 8942 2365
Web page: http://www.cls.dk/
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