DP2494 Combining Micro and Macro Unemployment Duration Data

Author(s): Gerard van den Berg, Bas van der Klaauw
Publication Date: July 2000
Keyword(s): Business Cycle, Duration Dependence, Heterogeneity, Seasons, Unemployment Composition, Unemployment Definition
JEL(s): C41, C51, E24, J64
Programme Areas: Labour Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=2494

We combine micro and macro unemployment duration data to study the effects of the business cycle on the outflow from unemployment. We allow the cycle to affect individual exit probabilities of unemployed workers as well as the composition of the total inflow into unemployment. We estimate the model using (micro) survey data and (macro) administrative data from France. The distribution of the inflow composition is estimated along with the other parameters. The estimation method deals with differences between the micro and macro unemployment definitions. The results also show to what extent the unemployment duration distributions corresponding to the two definitions can be described by the same model.