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Unequal Chances on the Transitional Labor Market: The Case of the Netherlands

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  • Bijwaard, Govert

    () (NIDI - Netherlands Interdisciplinary Demographic Institute)

  • Veenman, Justus

    () (Erasmus University Rotterdam)

Abstract

The emergence of a transitional labor market offers new opportunities to workers, but at the same time bears the risk of (new) inequalities. This paper deals with unequal chances on the transitional labor market in the Netherlands, in particular for workers from the four largest immigrant groups: Turks, Moroccans, Surinamese and Antilleans. The data used are from the SPVA, the survey `Social Position and Use of Public Utilities by Migrants' for the years 1998 and 2002. These are based on stock sampling. Since for some individuals labor market transitions occur at a very low rate, these individuals may stay in their current state till they reach the retirement age of 65. We estimate hazard rate models that account for both the stock-sampling and the possible maximum duration for the transitions from unemployment, household care and disability to employment. Then we decompose the difference in expected duration between the immigrant groups and the Dutch into the contribution of differences in observable characteristics, coefficient estimates and baseline hazard parameters. The main results of the analyses are that unequal chances exist, but to a different degree for the various groups and with variations per transition type.

Suggested Citation

  • Bijwaard, Govert & Veenman, Justus, 2007. "Unequal Chances on the Transitional Labor Market: The Case of the Netherlands," IZA Discussion Papers 2908, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp2908
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    References listed on IDEAS

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    1. Schmid, Günther, 2001. "Die Zukunft der Erwerbsarbeit: Thesen und Perspektiven für Mecklenburg-Vorpommern," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 01-205, Social Science Research Center Berlin (WZB).
    2. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    3. Bijwaard, Govert E. & Ridder, Geert, 2005. "Correcting for selective compliance in a re-employment bonus experiment," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 77-111.
    4. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    5. Heckman, James J. & Singer, Burton, 1984. "Econometric duration analysis," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 63-132.
    6. Ham, John C & Svejnar, Jan & Terrell, Katherine, 1998. "Unemployment and the Social Safety Net during Transitions to a Market Economy: Evidence from the Czech and Slovak Republics," American Economic Review, American Economic Association, vol. 88(5), pages 1117-1142, December.
    7. Nickell, Stephen J, 1979. "Estimating the Probability of Leaving Unemployment," Econometrica, Econometric Society, vol. 47(5), pages 1249-1266, September.
    8. Murphy, Anthony, 1996. "A piecewise-constant hazard-rate model for the duration of unemployment in single-interview samples of the stock of unemployed," Economics Letters, Elsevier, vol. 51(2), pages 177-183, May.
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    Cited by:

    1. Bijwaard, G.E., 2006. "A note on stock sampling and maximum duration," Econometric Institute Research Papers EI 2006-22, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    2. Bijwaard, Govert, 2007. "Modelling the Time on Unemployment Insurance Benefits," IZA Discussion Papers 2936, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Oaxaca-Blinder decomposition; transitional labor market; duration;

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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