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Unemployment duration and heterogenous search behavior among Swedish disabled workers

Author

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  • Melkersson, Maria

    (IFAU - Office of Labour Market Policy Evaluation)

Abstract

Return to employment, after a period of unemployment, is analyzed for a large sample of Swedish occupationally disabled workers. A piece-wise constant model is used, extended to allow for Gamma heterogeneity. Three competing exits from unemployment are accounted for; regular employment, sheltered/subsidized employment and withdrawal from the labor force. The model is also generalized by accounting for differing search behavior within the population. The hazard rate is constant or slightly increasing over time, for exit to some kind of employment. However, for exit from unemployment by leaving the labor force, the hazard shows quite strong positive duration dependence. Men tend to be more probable to leave unemployment for regular employment, and less probable than women to leave the labor force. The probability of finding regular employment is smallest for workers with psychological disabilities, while high-school or university education as well as previous professional experience increases the hazard rate for regular employment. The heterogeneity due to differing search behavior appears to be at least as important as the Gamma heterogeneity. The estimated probabilities of no search for one particular exit varies, across exits and subsamples, between 0.0 and 0.4.

Suggested Citation

  • Melkersson, Maria, 1999. "Unemployment duration and heterogenous search behavior among Swedish disabled workers," Working Paper Series 1999:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:1999_005
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    File URL: http://www.ifau.se/upload/pdf/se/to2000/wp99-5.pdf
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    References listed on IDEAS

    as
    1. Carling, Kenneth & Edin, Per-Anders & Harkman, Anders & Holmlund, Bertil, 1996. "Unemployment duration, unemployment benefits, and labor market programs in Sweden," Journal of Public Economics, Elsevier, vol. 59(3), pages 313-334, March.
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    7. Regina Riphahn, 1997. "Disability retirement and unemployment - substitute pathways for labour force exit? An empirical test for the case of Germany," Applied Economics, Taylor & Francis Journals, vol. 29(5), pages 551-561.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Dario Sciulli & Antonio Menezes & José Vieira, 2012. "Unemployment Duration and Disability: Evidence from Portugal," Journal of Labor Research, Springer, vol. 33(1), pages 21-48, March.
    2. Barbara Sianesi, 2001. "Differential effects of Swedish active labour market programmes for unemployed adults during the 1990s," IFS Working Papers W01/25, Institute for Fiscal Studies.
    3. Barbara Sianesi, 2002. "Swedish active labour market programmes in the 1990s: overall effectiveness and differential performance," IFS Working Papers W02/03, Institute for Fiscal Studies.
    4. Skedinger, Per & Widerstedt, Barbro, 2003. "Recruitment to Sheltered Employment: Evidence from Samhall, a Swedish State-Owned Company," Working Paper Series 597, Research Institute of Industrial Economics.
    5. Rodríguez-Planas, Núria, 2007. "What Works Best for Getting the Unemployed Back to Work: Employment Services or Small-Business Assistance Programmes? Evidence from Romania," IZA Discussion Papers 3051, Institute of Labor Economics (IZA).
    6. Melkersson, Maria, 1999. "Policy programmes only for a few? Participation in labour market programmes among Swedish disabled workers," Working Paper Series 1999:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    7. John T. Addison & Pedro Portugal, 2003. "Unemployment Duration Competing and Defective Risks," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
    8. Paulina de los Reyes, 2000. "Diversity at Work: Paradoxes, Possibilities and Problems in the Swedish Discourse on Diversity," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 21(2), pages 253-266, May.
    9. Stenberg, Anders, 2002. "Short Run Effects on Wage Earnings of the Adult Education Initiative in Sweden," Umeå Economic Studies 593, Umeå University, Department of Economics, revised 07 May 2003.
    10. Sylvie Blasco, 2010. "Le non recours à un système d'assurance chômage avec politiques actives d'emploi," Economie & Prévision, La Documentation Française, vol. 0(1), pages 1-25.
    11. Sianesi, Barbara, 2001. "An evaluation of the active labour market programmes in Sweden," Working Paper Series 2001:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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    More about this item

    Keywords

    Unemployment;

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General

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