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Title:Temporary layoffs and the duration of unemployment PDF Logo
Authors:Røed, Knut
Nordberg, Morten
Issue Date:2001
Series/Report no.:Memorandum, Department of Economics, University of Oslo 2001,12
Abstract: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 economic incentives, while spell-duration for temporary dismissed workers is explained by firm incentives. Higher benefits reduce the employment hazard for permanently- but increase it for temporary dismissed workers. Structural duration dependence is nonparametrically identified and sharply estimated with the aid of lagged hazard rate variation and repeated spells. The employment hazards for both spell-types exhibit positive duration dependence during the first months and negative duration dependence thereafter.
Subjects:unemployment duration
unobserved heterogeneity
competing risks
JEL:C41
J64
Document Type:Working Paper
Appears in Collections:Memorandum, Department of Economics, University of Oslo

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