Temporary layoffs and split population models
Kostas Mavromaras and
Chris Orme ()
Journal of Applied Econometrics, 2004, vol. 19, issue 1, 49-67
This paper develops and estimates a split population model for the duration of temporary layoffs in the German labour market; the population being split according to whether a layoff is temporary or permanent. A flexible piecewise constant hazard is employed and the recall propensity is used to condition the duration of a temporary layoff. The distinction between factors that influence the recall propensity and factors that influence the duration of a temporary layoff is shown to be of empirical significance. The results of the paper are used to evaluate implicit contract and search theories of temporary layoffs. The paper suggests that implicit contracts can explain the behaviour of unemployed workers with high worker-firm attachment whilst search can explain the behaviour of workers with low worker-firm attachment. Copyright © 2004 John Wiley & Sons, Ltd.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
http://hdl.handle.net/10.1002/jae.734 Link to full text; subscription required (text/html)
http://qed.econ.queensu.ca:80/jae/2004-v19.1/ Supporting data files and programs (text/html)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:jae:japmet:v:19:y:2004:i:1:p:49-67
Ordering information: This journal article can be ordered from
http://www3.intersci ... e.jsp?issn=0883-7252
Access Statistics for this article
Journal of Applied Econometrics is currently edited by M. Hashem Pesaran
More articles in Journal of Applied Econometrics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().