Determinants of Lifetime Unemployment: A Micro Data Analysis with Censored Quantile Regressions
Osteuropa-Institut (OEI); Government of the Federal Republic of Germany - Institute for Employment Research (IAB); University of Regensburg - Department of Economics and Econometrics
Government of the Federal Republic of Germany - Institute for Employment Research (IAB); University of Regensburg; Institute for the Study of Labor (IZA)
Institute for the Study of Labor (IZA), Research Paper Series, Forthcoming
The empirical literature on unemployment almost exclusively focuses on the duration of distinct unemployment spells. In contrast, we use a large German administrative micro data set for the time span 1975-2004 to investigate individual lifetime unemployment (defined as the total length of all unemployment spells over a 25-year period). This new perspective enables us to answer questions regarding the long-term distribution and determinants of unemployment for West German birth cohorts 1950-1954. We find that lifetime unemployment is highly unevenly distributed and employ censored quantile regressions to show that, for men, pursuing a disadvantageous occupation early in the professional career leads to a significantly higher amount of lifetime unemployment.
Number of Pages in PDF File: 30
Keywords: lifetime unemployment, censored quantile regressions, occupation-specific human capital
JEL Classification: J64, J24working papers series
Date posted: February 15, 2010
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