scholarly journals Modeling Employment Dynamics with State Dependence and Unobserved Heterogeneity

2010 ◽  
Author(s):  
Victoria L. Prowse
2009 ◽  
Vol 38 (3) ◽  
pp. 523-554 ◽  
Author(s):  
Lorenzo Cappellari ◽  
Richard Dorsett ◽  
Getinet Haile

2021 ◽  
Author(s):  
Ariel Pakes ◽  
Jack R. Porter ◽  
Mark Shepard ◽  
Sophie Calder-Wang

2019 ◽  
Vol 11 (23) ◽  
pp. 6671
Author(s):  
Nisar Ahmad ◽  
Amjad Naveed ◽  
Rayhaneh Esmaeilzadeh ◽  
Amber Naz

This paper analyses the dynamic transitions of self-employment in four states of the Canadian labour market (paid-employment, self-employment, unemployment, and being out of the labour force) by answering three core questions: (1) What are the determinants of the transitions into and out of the four labour market states? (2) Are the probabilities of transitions between immigrants and natives significantly different, and if so, are they due to entry–exit rate gaps between immigrants and natives? (3) What are the proportions of spurious and structural state dependence in the labour market states of immigrants and natives? Our analysis was based on longitudinal data from Canada’s Survey of Labour and Income Dynamics (SLID) for males aged 25 to 55 for the period 1993 to 2004. Our results revealed that immigrants rather than natives are relatively more likely to be self-employed during the unemployment period. The findings also confirmed that males with positive investment income or wealth tended to be largely self-employed. From a policy perspective, the government provision of financial support towards self-employment positively benefits natives in seeking self-employment opportunities. Government policies to lessen labour market discrimination promotes the self-employment of immigrants.


2000 ◽  
Vol 8 (4) ◽  
pp. 367-380 ◽  
Author(s):  
Christopher J. W. Zorn

As applications of duration analysis have burgeoned in political science, scholars have become increasingly aware of the potential substantive importance of duration dependence: the extent to which the conditional hazards of the events of interest are rising or falling over time. Here I discuss the issue of duration dependence, focusing on the distinction between “spurious” dependence due to unobserved heterogeneity and “true” duration dependence due to state dependence in the process of interest. I present a simple extension of a commonly used parametric duration model—the Weibull model—which allows researchers to assess the influence of causal variables on the nature and extent of duration dependence in their data. I then illustrate the application of this “generalized Weibull” model using data on the duration of international alliances.


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