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Explaining Unemployment Duration in Australia

Nick Carroll

No 483, CEPR Discussion Papers from Centre for Economic Policy Research, Research School of Economics, Australian National University

Abstract: What influences the probability that someone will leave unemployment? Informed by a search-theoretic framework and allowing for exits to not in the labour force and employment, I examine what influences the probability that somebody will leave unemployment. The unemployment data used are derived from the retrospective work history information from the first two waves of the Household, Income and Labour Dynamics in Australia Survey. I find that variables that increase wage offers and lower reservation wages are associated with shorter durations of unemployment and that exit rates from unemployment appear to remain steady initially with duration before declining relatively sharply.

Keywords: survival; analysis; unemployment; durations (search for similar items in EconPapers)
JEL-codes: J64 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2004-12
New Economics Papers: this item is included in nep-lab
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Journal Article: Explaining Unemployment Duration in Australia (2006) Downloads
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