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Duration Of Unemployment: Geographic Mobility And Selectivity Bias

Author

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  • Ernest Preston Goss

    (Creighton University)

  • Chris Paul

    (University of Alabama, Huntsville)

  • Al Wilhite

    (University of Alabama, Huntsville)

Abstract

Past researchers, examining the duration of joblessness, have failed to include a variable to account for the unemployed's migration decision. By employing a simultaneous structure with a censored dependent variable and an endogenous binary migration variable, the present study demonstrates that single stage models, which do not control for migration, produce selectivity bias in the estimated duration equation. The empirical model used in this study provides estimated coefficients that differ significantly from those of single stage models. For example, most past studies conclude that nonwhites suffer longer periods of unemployment than whites. The findings from the present study indicate that, after controlling for geographic mobility, there is no statistical difference in unemployment duration between whites and nonwhites.

Suggested Citation

  • Ernest Preston Goss & Chris Paul & Al Wilhite, 1994. "Duration Of Unemployment: Geographic Mobility And Selectivity Bias," The Review of Regional Studies, Southern Regional Science Association, vol. 24(2), pages 127-142, Fall.
    • Handle: RePEc:rre:publsh:v24:y:1994:i:2:p:127-142
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    References listed on IDEAS

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    1. Ehrenberg, Ronald G & Oaxaca, Ronald L, 1976. "Unemployment Insurance, Duration of Unemployment, and Subsequent Wage Gain," American Economic Review, American Economic Association, vol. 66(5), pages 754-766, December.
    2. Schwartz, Aba, 1976. "Migration, Age, and Education," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 701-719, August.
    3. Yoon, Bong Joon, 1981. "A Model of Unemployment Duration with Variable Search Intensity," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 599-609, November.
    4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    5. Nickell, Stephen J, 1979. "Estimating the Probability of Leaving Unemployment," Econometrica, Econometric Society, vol. 47(5), pages 1249-1266, September.
    6. Harry J. Holzer, 1987. "Job Search by Employed and Unemployed Youth," ILR Review, Cornell University, ILR School, vol. 40(4), pages 601-611, July.
    7. Lancaster, Tony, 1979. "Econometric Methods for the Duration of Unemployment," Econometrica, Econometric Society, vol. 47(4), pages 939-956, July.
    8. Ernst Goss, 1988. "Prior Geographic Mobility and Job Search Length," The Review of Regional Studies, Southern Regional Science Association, vol. 18(1), pages 49-54, Winter.
    9. Stephen T. Marston, 1975. "The Impact of Unemployment Insurance on Job Search," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 6(1), pages 13-60.
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    Cited by:

    1. Mark D. Partridge & Dan S. Rickman, 1996. "County Unemployment In Georgia: The Causes And Potential Role For Economic Development Policy," The Review of Regional Studies, Southern Regional Science Association, vol. 26(1), pages 17-39, Summer.
    2. Sari Pekkala & Hannu Tervo, 2002. "Unemployment and Migration: Does Moving Help?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 621-639, December.
    3. Scott Baum & Anthea Bill & William Mitchell, 2008. "Labour Underutilisation in Metropolitan Labour Markets in Australia: Individual Characteristics, Personal Circumstances and Local Labour Markets," Urban Studies, Urban Studies Journal Limited, vol. 45(5-6), pages 1193-1216, May.
    4. Ernest P. Goss & Joseph M. Phillips, 1997. "The Impact of Home Ownership on the Duration of Unemployment," The Review of Regional Studies, Southern Regional Science Association, vol. 27(1), pages 9-27, Summer.

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