Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/91949
Authors: 
Cappellari, Lorenzo
Dorsett, Richard
Haile, Getinet
Year of Publication: 
2007
Series/Report no.: 
ISER Working Paper Series 2007-16
Abstract: 
This paper examines employment transitions among men and women in the UK aged between 50 and the state pension age. We begin by examining the issue of duration dependence, using standard duration models. We then use a fourth order Markov model to estimate quarterly transitions while allowing for potential endogeneity of initial conditions. The results reject exogeneity of initial conditions and show the importance of both duration dependence and state dependence. This implies there is the potential for any individual to become trapped in non-employment and, ideally, policy should intervene as soon as an individual begins a period of non-employment.
Document Type: 
Working Paper

Files in This Item:
File
Size
271.35 kB





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