Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/35686 
Year of Publication: 
2009
Series/Report no.: 
IZA Discussion Papers No. 3992
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
We study job durations using a multivariate hazard model allowing for worker-specific 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: 
C11
C15
C41
J20
J41
J62
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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