Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/45745
Year of Publication: 
2009
Series/Report no.: 
Working Paper No. 2009:4
Publisher: 
Institute for Labour Market Policy Evaluation (IFAU), Uppsala
Abstract: 
We study job durations using a multivariate hazard model allowing for workerspecific and firm-specific unobserved determinants. The latter are captured by unobserved heterogeneity terms or random effects, one at the firm level and another at the worker level. This enables us to decompose the variation in job durations into the relative contribution of the worker and the firm. We also allow the unobserved terms to be correlated. For the empirical analysis we use a Portuguese longitudinal matched employer-employee data set. The model is estimated with a Bayesian Markov Chain Monte Carlo (MCMC) estimation method. The results imply that firm characteristics explain around 30% of the variation in log job durations. In addition, we find a positive correlation between unobserved worker and firm characteristics.
Subjects: 
Job transitions
assortative matching
Gibbs sampling
frailties
dynamic models
matched employer-employee data
JEL: 
C99
J64
J68
Document Type: 
Working Paper

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