Modeling Employment Dynamics With State Dependence and Unobserved Heterogeneity

A-Tier
Journal: Journal of Business & Economic Statistics
Year: 2012
Volume: 30
Issue: 3
Pages: 411-431

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This study extends existing work on the dynamics of labor force participation by distinguishing between full-time and part-time employment and by allowing unobserved heterogeneity in the effects of previous employment outcomes, children and education on labor supply behavior. In addition, unobserved heterogeneity may feature autocorrelation and correlated random effects. The results reveal significant variation in the effects of children and education on labor supply behavior. Moreover, the omission of random coefficients and autocorrelation biases estimates of state dependencies. On average, temporary shocks that increase the rate of part-time employment lead subsequently to lower rates of nonemployment than do shocks that temporarily increase the rate of full-time work. The article has additional online supplementary material.

Technical Details

RePEc Handle
repec:taf:jnlbes:v:30:y:2012:i:3:p:411-431
Journal Field
Econometrics
Author Count
1
Added to Database
2026-01-29