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Journal Article

Wages, work, and unemployment

Authors

Publication date

1998

Abstract

This paper provides new evidence on unemployment durations for individuals in Great Britain using a three state Markov framework in a competing risk setting and a nationally representative data set. The analysis is based on the premise that an individual's movements between labour market states can be represented by a Markov process. The modelling procedure combines the dynamic properties of the search approach to unemployment while using the labour supply decision at each moment in time in response to the expected wage to include participation decisions. Using this framework, we are able to determine the effect of individual characteristics, including the expected wage, on labour market behaviour. The model is estimated separately for men and women, and for young and mature workers, to investigate whether labour market behaviour differs for these groups. The validity of the Markov assumptions are tested using different model specifications, and changes in the model over calendar time are also presented.

Published in

Applied Economics

Volume

30 (11):1531-1547

DOI

http://dx.doi.org/10.1080/000368498324869

Subjects

Labour Market, Unemployment, and Wages And Earnings

Links

http://serlib0.essex.ac.uk/record=b1594910~S5

Notes

Albert Sloman Library Periodicals *restricted to Univ. Essex registered users*

#511731


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