Unemployment Duration: Competing and Defective Risks

This paper examines the determinants of unemployment duration in a competing risks framework with two destination states: inactivity and employment. The innovation is the recognition of defective risks. A polynomial hazard function is used to differentiate between two possible sources of infinite durations. The first is produced by a random process of unlucky draws, the second by workers rejecting a destination state. The evidence favors the mover-stayer model over the search model. Refinement of the former approach, using a more flexible baseline hazard function, produces a robust and more convincing explanation for positive and zero transition rates out of unemployment.

How do different entitlements to unemployment benefits affect the transitions from unemployment into employment?

In Portugal duration of benefits is exclusively age determined while replacement rates are essentially uniform. We exploit differences in potential maximum duration of benefits for nearly matched pairs of individuals to determine the effects of benefit duration on job finding. (C) 2008 Elsevier B.V. All rights reserved.

Unemployment Benefits and Reservation Wages: Key Elasticities from a Stripped-Down Job Search Approach

This paper exploits survey information on reservation wages and data on actual wages from the European Community Household Panel to deduce, in the manner of Lancaster and Chesher, additional parameters of a stylized structural search model; specifically, reservation wage and transition/duration elasticities. The informational requirements of this approach are minimal, thereby facilitating comparisons between countries. Further, its policy content is immediate in so far as the impact of unemployment benefit rules and measures increasing the arrival rate of job offers are concerned. These key elasticities are computed for the United Kingdom and 11 other European nations.

Six ways to leave unemployment

This paper uses a unique Portuguese dataset to examine the effect of access to unemployment benefits (UBs) and their maximum potential duration on escape rates from unemployment. In examining the time profile of transitions out of unemployment, the principal contributions of the paper are twofold. First, it provides a detailed state space of potential outcomes: open-ended employment, fixed-term contracts, part-time work, government-provided jobs, self employment, and labour force withdrawal. Second, it is able to exploit major exogenous discontinuities in the maximum duration of unemployment benefits to identify disincentive effects. While confirming strong disincentive effects, it is shown that use of an aggregate hazard function regression model compounds very different and even contradictory effects of the determinants of unemployment.

Parish farms and the poor law: a response to unemployment in rural southern England, c.1815-1835

Finding a ‘solution’ for the seemingly intractable problem of unemployment in post-Napoleonic rural England was the Holy Grail for many vestries. Yet, whilst we know much about the depth and consequences of unemployment, parish-driven schemes to set the poor to work have been subjected to remarkably little in the way of systematic study. This paper focuses on one such policy that remains entirely obscure: parish farms, the hiring of pre-existing farms or fields by the parish on which to employ those out of work. Bearing a ‘family resemblance’ to allotments and other land-based attempts to alleviate poverty, parish farms were unique in that they were managed in all regards by the parish and were an employment strategy as opposed to a scheme to supplement the incomes of the poor. Whilst the archive of parish farms is often frustratingly opaque, it is shown that before they were effectively outlawed by the passing of the New Poor Law, many southern parishes, especially in the Weald of Kent and Sussex, adopted the scheme, occasionally with great success.