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The effect of transitional employment on search duration: A selectivity approach

Julie Hotchkiss

Atlantic Economic Journal, 1999, vol. 27, issue 1, 38-52

Abstract: This paper presents an analysis of the impact of transitional employment (employment fully contained within a search spell) on search duration. Log-linear duration equations, which are derived from an accelerated time-life specification, are estimated separately for those who take and do not take a transitional job. Selectivity terms are included as additional regressors in the specification in order to control for the endogeneity of the decision to take a transitional job. The presence of right-censored search spells is controlled for and the standard errors are corrected to account for the inclusion of generated regressors. A searcher who takes a transitional job can expect to be searching for permanent employment almost eight months longer and has a substantially different escape pattern than a searcher who does not take a transitional job. Copyright International Atlantic Economic Society 1999

Date: 1999
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DOI: 10.1007/BF02299176

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