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State Dependence in Youth Labor Market Experiences, and the evaluation of policy interventions

Doiron, Denise; Gorgens, Jakob (Tue)


We investigate the extent and type of state dependence in labor market outcomes for young low-skilled Australians. Our model allows for three labor force states, employment, unemployment and out of the labor force, and for observed and unobserved heterogeneity. We find evidence of occurrence dependence, but no lagged duration dependence. A past employment spell increases the probability of employment in the future, but the length of the spell does not matter. A past spell of unemployment undoes...[Show more]

CollectionsANU Research Publications
Date published: 2008
Type: Journal article
Source: Journal of Econometrics
DOI: 10.1016/j.jeconom.2008.05.010


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