EconPapers    
Economics at your fingertips  
 

In and out of unemployment - labour market dynamics and the role of testosterone

Peter Eibich (), Ricky Kanabar (), Alexander Plum and Julian Schmied ()

No WP-2020-033, MPIDR Working Papers from Max Planck Institute for Demographic Research, Rostock, Germany

Abstract: Biological processes have provided new insights into diverging labour market trajectories. In this paper, we use population variation in testosterone levels to explain transition probabilities into and out of unemployment. We follow individual employment histories for 1,771 initially employed and 109 initially unemployed British men from the UK Household Longitudinal Study (“Understanding Society”) between 2009 and 2015. To account for unobserved heterogeneity, we apply dynamic random effect models. We find that individuals with high testosterone levels are more likely to become unemployed, but they are also more likely to exit unemployment. Based on previous studies and descriptive evidence, we argue that these effects are likely driven by personality traits and occupational sorting of men with high testosterone levels. Our findings suggest that latent biological processes can affect job search behaviour and labour market outcomes, without necessarily relating to illness and disability.

Keywords: United; Kingdom (search for similar items in EconPapers)
JEL-codes: J1 Z0 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2020
New Economics Papers: this item is included in nep-eur, nep-hea and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.demogr.mpg.de/papers/working/wp-2020-033.pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dem:wpaper:wp-2020-033

DOI: 10.4054/MPIDR-WP-2020-033

Access Statistics for this paper

More papers in MPIDR Working Papers from Max Planck Institute for Demographic Research, Rostock, Germany
Bibliographic data for series maintained by Peter Wilhelm ().

 
Page updated 2021-04-04
Handle: RePEc:dem:wpaper:wp-2020-033