Modelling the Probability of Youth Unemployment in Australia: 1985-1988

Mark N. Harris

No 267628, Department of Econometrics and Business Statistics Working Papers from Monash University, Department of Econometrics and Business Statistics

Abstract: This paper attempts to explain how particular personal characteristics affect the probability of unemployment of Australian youth. For this purpose the Australian Longitudinal Survey (1985-1988) is utilised and a Univariate Equicorrelated Random Effects Probit model applied to the data. The Survey appears to be affected by endogenous attrition, the source of which was found to be nationality and education levels. These processes were accounted for in the estimation procedures. This study appears to be the first attempt to analyse this particular data as a panel data set in a Random Utility Discrete Choice context. Results indicate that age, education and financial housing commitments exert a positive influence on the probability of unemployment. Also, there is evidence to suggest that the disabled are discriminated against, and that reservation wages exert a strong negative effect.

Keywords: Labor and Human Capital; Public Economics; Research and Development/Tech Change/Emerging Technologies; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 41
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Persistent link: https://EconPapers.repec.org/RePEc:ags:monebs:267628

DOI: 10.22004/ag.econ.267628

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