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Unemployment in Australia: Duration and Recurrent Spells

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  • P. K. TRIVEDI
  • G. M. BAKER

Abstract

Using a parametric technique. this paper estimates average completed duration of unemployment for several age and sex categories. It shows that the use of Labour Force Survey data leads to underestimates due to the presence of recurrent unemployment. When allowance is made, using A BS Persons Looking for Work and Labour Force Experience data, it is shown that new entrants to unemployment in 1981 could expect to remain unemployed for nearly six months. For teenagers evidence is presented to suggest that, contrary to current economic thought, teenagers may on average be unemployed for longer periods per spell and may have less experience of recurrent spells than their counterparts. It also shows that changes in the unemployment rate are dominated by changes in duration.

Suggested Citation

  • P. K. Trivedi & G. M. Baker, 1983. "Unemployment in Australia: Duration and Recurrent Spells," The Economic Record, The Economic Society of Australia, vol. 59(2), pages 132-148, June.
    • Handle: RePEc:bla:ecorec:v:59:y:1983:i:2:p:132-148
    DOI: 10.1111/j.1475-4932.1983.tb00589.x
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    File URL: https://doi.org/10.1111/j.1475-4932.1983.tb00589.x
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    References listed on IDEAS

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    1. Akerlof, George A & Main, Brian G M, 1980. "Unemployment Spells and Unemployment Experience," American Economic Review, American Economic Association, vol. 70(5), pages 885-893, December.
    2. Stephen W. Salant, 1977. "Search Theory and Duration Data: A Theory of Sorts," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 91(1), pages 39-57.
    3. repec:bla:ecorec:v:58:y:1982:i:161:p:118-33 is not listed on IDEAS
    4. Mortensen, Dale T, 1970. "Job Search, the Duration of Unemployment, and the Phillips Curve," American Economic Review, American Economic Association, vol. 60(5), pages 847-862, December.
    5. W. F. Foster & R. G. Gregory, 1982. "The Contribution of Employment Separation to Teenage Unemployment," The Economic Record, The Economic Society of Australia, vol. 58(2), pages 118-133, June.
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    Cited by:

    1. Clive Brooks & Paul Volker, 1986. "The Probability of Leaving Unemployment: The Influence of Duration, Destination and Demographics," The Economic Record, The Economic Society of Australia, vol. 62(3), pages 296-309, September.
    2. James J. Heckman, 2005. "Micro Data, Heterogeneity and the Evaluation of Public Policy Part 2," The American Economist, Sage Publications, vol. 49(1), pages 16-44, March.

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