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Duration dependence, lagged duration dependence, and occurrence dependence in individual employment histories

  • Niedergesäss, Markus
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    This paper investigates the form and magnitude of a variety of state dependence effects for prime-aged men in Germany. I differentiate between three labor market states: employment, unemployment, and out of labor force. Results indicate that all forms of state dependence are present in the data, in particular, there is strong duration dependence in employment and unemployment. Furthermore, past unemployment experiences are scarring and make future unemployment more likely while past employment experiences help to find new employment, but do not help to remain employed. Simulations are conducted in order to investigate the effects of possible interventions in the labor market.

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    File URL: http://econstor.eu/bitstream/10419/55220/1/684935872.pdf
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    Paper provided by University of Tuebingen, Faculty of Economics and Social Sciences in its series University of Tuebingen Working Papers in Economics and Finance with number 26.

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    Date of creation: 2012
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    Handle: RePEc:zbw:tuewef:26
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    16. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The identifiability of the mixed proportional hazards competing risks model," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 65(3), pages 701-710.
    17. Vishwanath, Tara, 1989. "Job Search, Stigma Effect, and Escape Rate from Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 487-502, October.
    18. Flaig, Gebhard & Licht, Georg & Steiner, Viktor, 1993. "Testing for state dependence effects in a dynamic model of male unemployment behaviour," ZEW Discussion Papers 93-07, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    19. Anna Christina D'Addio & Michael Rosholm, . "Left-Censoring in Duration Data: Theory and Applications," Economics Working Papers 2002-5, School of Economics and Management, University of Aarhus.
    20. Anna Christina D'Addio & Michael Rosholm, . "Labour Market Transitions of French Youth," Economics Working Papers 2002-14, School of Economics and Management, University of Aarhus.
    21. Fitzenberger, Bernd & Wilke, Ralf A., 2004. "Unemployment Durations in West-Germany Before and After the Reform of the Unemployment Compensation System During the 1980s," ZEW Discussion Papers 04-24, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    22. Gritz, R. Mark, 1993. "The impact of training on the frequency and duration of employment," Journal of Econometrics, Elsevier, vol. 57(1-3), pages 21-51.
    23. Magnac, Thierry, 2000. "Subsidised Training and Youth Employment: Distinguishing Unobserved Heterogeneity from State Dependence in Labour Market Histories," Economic Journal, Royal Economic Society, vol. 110(466), pages 805-37, October.
    24. Dolton, Peter & Smith, Jeffrey A., 2011. "The Impact of the UK New Deal for Lone Parents on Benefit Receipt," IZA Discussion Papers 5491, Institute for the Study of Labor (IZA).
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    26. Winter-Ebmer, Rudolf & Zweimuller, Josef, 1992. "Do They Come Back Again? Job Search, Labour Market Segmentation and State Dependence as Explanations of Repeat Unemployment," Empirical Economics, Springer, vol. 17(2), pages 273-92.
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