Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/35629
Authors: 
Frijters, Paul
Lindeboom, Maarten
van den Berg, Gerard J.
Year of Publication: 
2009
Series/Report no.: 
IZA discussion papers 4025
Abstract: 
Using longitudinal income-tax registers, we study how past labour market outcomes affect current labour market transition rates. We focus on hysteresis effects of the durations and incidence of previous spells out of work. We estimate flexible multi-state Mixed Proportional Hazard specifications for transition rates between employment, unemployment, and welfare/non-participation. Our main finding is that after longer periods of employment with high income, individuals' transition rates from unemployment to employment increase. Longer periods of non-employment generally decrease future transition rates to work, and sometimes also from work. The quantitative magnitude of persistency and hysteresis effects on inequality is modest.
Subjects: 
Duration analysis
hysteresis
inequality
wages
unemployment
hazard rates
employment
income
work
JEL: 
J64
J22
C41
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
383.36 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.