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The Distributional Shape of Unemployment Duration: A Reply

The Review of Economics and Statistics 1992 74(4), 717
McDonald, James B., and Richard J. Butler, Some Generalized Mixture Distributions with an Application to Unemployment Duration, this REVIEW 69 (May 1987), 232-240. Podgursky, Michael, and Paul Swaim, Duration of Joblessness Following Displacement, Industrial Relations 26 (Fall 1987), 213-226. Prentice, Ross L., A Log Gamma Model and Its Maximum Likelihood Estimation, Biometrika 61 (Dec. 1974), 539-544. Swaim, Paul, and Michael Podgursky, Advance Notice and Job Search: The Value of an Early Start, Journal of Human Resources 25 (Spring 1990), 148-178.

On the Distributional Shape of Unemployment Duration

The Review of Economics and Statistics 1987 69(3), 520
Using an accelerated failure time model, the extended generalized gamma distribution is deployed to discriminate among various special cases of that distribution. Displaced worker data from the January 1984 Current Population Survey are analyzed within a regression framework that accommodates the stochastic nature of the point of censoring associated with incomplete spells of unemployment. Not only are the regression parameters sensitive to distributional assumption but also there is evidence of different distributional shapes and hence duration dependencies in subsets of the data.