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Title:Structural change of the production process and unemployment duration in Germany PDF Logo
Authors:Schimmelpfennig, Axel
Issue Date:1999
Series/Report no.:Kiel Working Papers 959
Abstract:Based on a Cox Proportional Hazard analysis of German unemployment spells, structural change of the production process is identified as a major explanation for long-term unemployment. Other important covariates capture labor market institutions, macroeconomic stress factors, and individual characteristics. Structural change of the production process has resulted in a shift in labor demand across occupations and skills. For individuals laid off from declining parts of the economy, this implies a devaluation of their human capital. They need to acquire new skills for positions in expanding parts of the economy, or spend a longer time in unemployment searching for the few remaining jobs for which they possess adequate skills.
Subjects:Unemployment duration
Cox Proportional Hazard model
structural change
JEL:J62
J64
C41
Document Type:Working Paper
Appears in Collections:Kieler Arbeitspapiere, IfW
Publikationen von Forscherinnen und Forschern des IfW

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