State Dependence in Unemployment Incidence: Evidence for British Men Revisited

35 Pages Posted: 12 Dec 2002

See all articles by Wiji Arulampalam

Wiji Arulampalam

University of Warwick - Department of Economics; IZA Institute of Labor Economics

Date Written: November 2002

Abstract

The issues of persistence in the observed labour market status of men are investigated using the British Household Panel Survey for the period 1991-97. The paper extends previous work in many directions. In particular, problems of endogenous initial conditions, and unobserved heterogeneity, are addressed within the context of different definitions of unemployment. In addition, allowance is also made to accommodate the "stayer" phenomenon in the state of employment. All these were found to be very important in the estimation of the effect of scarring.

Keywords: Dynamic Binary Panel Models, Unemployment, State Dependence, Unobserved Heterogeneity, Initial Conditions

JEL Classification: C15, C23, C25, J64

Suggested Citation

Arulampalam, Wiji, State Dependence in Unemployment Incidence: Evidence for British Men Revisited (November 2002). Available at SSRN: https://ssrn.com/abstract=358161

Wiji Arulampalam (Contact Author)

University of Warwick - Department of Economics ( email )

Coventry CV4 7AL
United Kingdom
01203 523471 (Phone)
01203 523032 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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