Dynamic Relationships in the Australian Labour Market: Heterogeneity and State Dependence

15 Pages Posted: 2 Dec 2002

See all articles by Stephen Knights

Stephen Knights

University of Oxford - Department of Economics

Mark N. Harris

Curtin University

Joanne Loundes

affiliation not provided to SSRN

Abstract

In this study, individual labour market dynamics are analysed using the Australian Longitudinal Survey. A random utility framework for analysing discrete choices is adopted. In this context, a model incorporating a state dependent relationship between employment outcomes is estimated. The influence on individual employment outcomes of additional variables including education, gender and unemployment benefits is also investigated. It is found that, even after controlling for observable and unobservable differences between individuals, there is evidence of state dependence, which may constitute evidence of a 'scarring' effect of unemployment.

Suggested Citation

Knights, Stephen and Harris, Mark N. and Loundes, Joanne, Dynamic Relationships in the Australian Labour Market: Heterogeneity and State Dependence. Economic Record, Vol. 78, pp. 284-298, 2002. Available at SSRN: https://ssrn.com/abstract=324674

Stephen Knights (Contact Author)

University of Oxford - Department of Economics ( email )

Manor Road Building
Manor Road
Oxford, OX1 3BJ
United Kingdom

Mark N. Harris

Curtin University ( email )

Kent Street
Bentley
Perth, WA WA 6102
Australia

HOME PAGE: http://business.curtin.edu.au/contact/staff_directory/?profile=Mark-Harris

Joanne Loundes

affiliation not provided to SSRN

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