Duration and Risk of Unemployment in Argentina

25 Pages Posted: 9 Aug 2002

See all articles by Hugo A. Hopenhayn

Hugo A. Hopenhayn

University of California, Los Angeles (UCLA) - Department of Economics

Sebastian Galiani

University of Maryland - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: October 2001

Abstract

After a decade of structural reforms, unemployment rates have tripled in Argentina. This paper is concerned with the measurement of unemployment risk and its distribution. We show the importance of considering re-incidence in the measurement of unemployment risk and develop a methodolgy to do that. Our estimates for Argentina show that, though the typical unemployment spell is short, once re-incidence is taken into account, unemployment risk is high, has risen substantially in the last decade and is shared very unequally in the labor force. This counters the established view that unemployment is a small risk, short-duration phenomenon, which arises when re-incidence is not considered.

Keywords: Developing labor markets, hazard functions, unemployment duration

JEL Classification: J0, J6

Suggested Citation

Hopenhayn, Hugo A. and Galiani, Sebastian, Duration and Risk of Unemployment in Argentina (October 2001). Available at SSRN: https://ssrn.com/abstract=319560 or http://dx.doi.org/10.2139/ssrn.319560

Hugo A. Hopenhayn (Contact Author)

University of California, Los Angeles (UCLA) - Department of Economics ( email )

Box 951477
Los Angeles, CA 90095-1477
United States

Sebastian Galiani

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States

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