Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy
Unemployment duration and heterogenous search behavior among Swedish disabled workers
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.
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.
Keywords: Unemployment; (follow links to similar papers)
JEL-Codes: J00; (follow links to similar papers)
23 pages, August 24, 1999
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