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Heterogeneity in unemployment state dependence

Alexander Plum () and Sara Ayllón ()

Economics Letters, 2015, vol. 136, issue C, 85-87

Abstract: By applying a heterogeneous slope model, this paper shows that unemployment state dependence varies across workers. Assuming a homogeneous effect of past unemployment on the risk of staying unemployed underestimates the scarring effect of unemployment in the majority of countries analyzed.

Keywords: Unemployment; State dependence; Heterogeneity; ECHP (search for similar items in EconPapers)
JEL-codes: C23 J64 J65 (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1016/j.econlet.2015.09.006

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