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The Impact of the Reason for Layoff on the Subsequent Unemployment Duration

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  • Anna Okatenko

Abstract

This paper estimates the impact of the reason for layoff (economic or personal) on the length of the subsequent unemployment spell, exploiting the French Labour Force Survey. In order to control for an eventual endogeneity of the reason for layoff, a joint model of the type of layoff and unemployment duration is proposed. The length of the unemployment spell is estimated to be significantly shorter after a layoff for economic reasons than after a layoff for personal reasons, especially for nonsupervisory workers with less than a high school degree. We interpret these findings as a sign that the type of layoff is used by prospective employers as a signal of unobserved worker's productivity.

Suggested Citation

  • Anna Okatenko, 2010. "The Impact of the Reason for Layoff on the Subsequent Unemployment Duration," Annals of Economics and Statistics, GENES, issue 99-100, pages 285-315.
    • Handle: RePEc:adr:anecst:y:2010:i:99-100:p:285-315
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    File URL: http://www.jstor.org/stable/41219168
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    Cited by:

    1. Batut, Cyprien & Maurin, Eric, 2019. "From Ultima Ratio to Mutual Consent: The Effects of Changing Employment Protection Doctrine," IZA Discussion Papers 12440, Institute of Labor Economics (IZA).
    2. Luis Eduardo Arango & Ana María Ríos, 2015. "Duración del desempleo en Colombia: género, intensidad de búsqueda y anuncios de vacantes," BORRADORES DE ECONOMIA 012528, BANCO DE LA REPÚBLICA.
    3. Carlos Alberto Foronda Rojas & Andrea Alcaráz, 2015. "Estimation and characteristics of unemployment duration in Bolivia," Investigación & Desarrollo, Universidad Privada Boliviana, vol. 2(1), pages 15-40.
    4. Luis Eduardo Arango & Ana María Ríos, 2015. "Duración del desempleo en Colombia: género, intensidad de búsqueda y anuncios de vacantes," Borradores de Economia 12528, Banco de la Republica.

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