Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/55220
Authors: 
Niedergesäss, Markus
Year of Publication: 
2012
Series/Report no.: 
University of Tübingen working papers in economics and finance 26
Abstract: 
This paper investigates the form and magnitude of a variety of state dependence effects for prime-aged men in Germany. I differentiate between three labor market states: employment, unemployment, and out of labor force. Results indicate that all forms of state dependence are present in the data, in particular, there is strong duration dependence in employment and unemployment. Furthermore, past unemployment experiences are scarring and make future unemployment more likely while past employment experiences help to find new employment, but do not help to remain employed. Simulations are conducted in order to investigate the effects of possible interventions in the labor market.
Subjects: 
state dependence
transition data
event history analysis
unobserved heterogeneity
JEL: 
C33
C41
J64
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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