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A Competing Risk Decomposition of Average Duration Effects

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  • Donal O'Neill

    (Department of Economics, Finance and Accounting, Maynooth University.)

Abstract

In this paper, I consider how to isolate the contribution of competing risks to the overall difference in average durations between two groups. I propose a new decomposition, which is valid irrespective of the dependence structure across exit states or the shape of the underlying hazards. The new decomposition has an intuitive visual representation and is closely related to the Cumulative Incidence Function, previously used in competing risk analysis. I illustrate the decomposition by examining gender differences in the labour market response of 18 year-old jobseekers in Ireland to a 50% cut in unemployment benefits.

Suggested Citation

  • Donal O'Neill, 2017. "A Competing Risk Decomposition of Average Duration Effects," Economics Department Working Paper Series n280-17.pdf, Department of Economics, National University of Ireland - Maynooth.
  • Handle: RePEc:may:mayecw:n280-17.pdf
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