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On the Distributional Shape of Unemployment Duration

John T. Addison; Pedro Portugal

The Review of Economics and Statistics 1987

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.

DOI
10.2307/1925542
Volume
69 (3)
Pages
520
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