Temporary Layoffs and the Duration of Unemployment
Authors:
Røed, Knut and Nordberg, Morten
Year:
2003
Reference:
Vol. 10, 381-398Summary
We use Norwegian micro-data to identify the driving forces behind unemployment spells following temporary- and permanent dismissals. The duration of unemployment spells for permanently dismissed workers is primarily explained by individual resources and eco-nomic incentives, while spell-duration for temporary dismissed workers is explained by firm incentives. Structural duration dependence is non-parametrically identified and sharply estimated with the aid of variation in business cycles and repeated spells. The em-ployment hazards for both spell-types exhibit positive duration dependence during the first months and negative duration dependence thereafter.
JEL:
C41, J64
Keywords:
unemployment duration, unobserved heterogeneity, competing risks
Project:
Oppdragsgiver: AADOppdragsgivers prosjektnr.:
Frisch prosjekt: 1312 - Unemployment transitions
Contact:
knut.roed@frisch.uio.no
Financing:
Arbeids- og administrasjonsdepartementet