DP4120 Nonparametric Estimation of a Dependent Competing Risks Model for Unemployment Durations

Author(s): Gerard van den Berg, A Gijsbert C van Lomwel, Jan C. van Ours
Publication Date: November 2003
Keyword(s): duration dependence, exit rate, hazard rate, non-participation, unobserved heterogeniety
JEL(s): C41, J64
Programme Areas: Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=4120

In this Paper we simultaneously analyse transitions from unemployment to employment and to non-participation. We estimate a dependent competing risks model with non-parametric specifications of the destination-specific duration dependence and unobserved heterogeneity terms, allowing for mutual dependence of the unobserved heterogeneity terms. We use a unique population data set of French unemployment over the period 1988-94, stratified by gender type, duration class and exit state.