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Unemployment Durations of French Young People

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  • d’Addio, Anna Cristina

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES); UNIVERSITE CATHOLIQUE DE LOUVAIN, Center for Operations Research and Econometrics (CORE))

Abstract

Using the 1990-1992 wave of the French Labour Force Survey this paper analyzes the effects of different factors on the probability of leaving unemployment of French young people. It also studies duration dependence of the hazard rate while controlling for unobserved heterogeneity separately for men and women. A semi-parametric and two parametric hazard functions have been estimated using grouped duration data. A gamma mixing distribution is used to capture individual unobserved heterogeneity. When the correction for unobserved heterogeneity is not incorporated the model chosen is (for both groups) the Weibull that shows modelled the exponential hazard function (no duration dependence) id retained and again foe both population analysed. This result seems to suggest that observed true negative duration dependence should be explained more trough unobserved heterogeneity than trough structural factors, a conclusion to be thought in terms of the mover-stayer paradigm.

Suggested Citation

  • d’Addio, Anna Cristina, 1998. "Unemployment Durations of French Young People," LIDAM Discussion Papers IRES 1998021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:1998021
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/9821.pdf
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    Citations

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    Cited by:

    1. V. Vandenberghe, 2000. "Leaving Teaching in the French-Speaking Community of Belgium: A Duration Analysis," Education Economics, Taylor & Francis Journals, vol. 8(3), pages 221-239.
    2. Bart Cockx & Muriel Dejemeppe, 2005. "Duration dependence in the exit rate out of unemployment in Belgium. Is it true or spurious?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(1), pages 1-23, January.
    3. Lauer, Charlotte, 2003. "Education and Unemployment: A French-German Comparison," ZEW Discussion Papers 03-34, ZEW - Leibniz Centre for European Economic Research.

    More about this item

    Keywords

    proportional hazard models; grouped duration data; discrete-time data; unobserved heterogeneity;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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