Template-type: ReDIF-Paper 1.0
Author-Name: P. Taylor, Mark
Author-Name: Burdett, Kenneth
Title: Semi-Markov and Markov labour histories
Abstract: It is possible to construct a panel of labour market flows from the first wave of the British Household Panel Study. Using this data, a three-state Markov model of labour market transitions is specified and estimated, using the proportional hazard function approach. The three states considered are unemployment, employment and self-employment. The purpose of this exercise is to illustrate how Markovian models can be used to identify the determinants of labour market flows. The sample used consists of mature males (25-55 years old) as this to a large extent eliminates the problems associated with non-participation. Specification tests reveal that the null hypothesis that an individuals labour market history can be described by a Markov process can not be rejected, and hence the time invariant hazard rates are used to evaluate the steady state proportions.

Creation-Date: 19940601
Number: 1994-27
Publication-Status: published
File-Format: Application/pdf
Handle: RePEc:ese:iserwp:1994-27