Exact(5)
The coefficient on the duration dependence variable is the log of time.
The duration dependence of the hazard rate is captured in two ways.
Modelling the hazard rate identified the duration dependence of the process of allocating time to travel.
While composition effects based on observable characteristics explain away some of the duration dependence, further controlling for unobserved heterogeneity largely wipes it out.
The focus on the duration dependence dimension of the daily allocation of time to travel raises the question of the temporal dynamic of the behaviour.
Similar(55)
In agreement with the recent literature on LTU in the US, we also find that duration dependence and not dynamic selection is the primary source of the low job-finding rates of the long-term unemployed.
Kroft et al. (2014) indeed find that duration dependence can account for much of the increase in long-term unemployment.
The results are also highly robust as long as the number of support points remains between two and three.23 This may imply that the information content in the data relating to the distribution of the unobserved heterogeneity term is sufficient to ensure robust identification of the structural duration dependence in the hazard rates, as well as the effects of benefits on spell duration.
Overall, our MMPH model demonstrates its relevance with the significant differences between the patterns of duration dependence and the effects of the explanatory variables on each hazard rate.
Second, for beneficiaries using solidarity fund, the unemployment duration dependence pattern is consistent with moral hazard effects, and for beneficiaries relying on UISAs only, the pattern is free of such effects.
We considered alternative distributional assumptions for the parametric duration dependence (exponential, gamma, Gompertz, log logistic, log normal, and Weibull), selecting Weibull because of model fit and because it best matched the patterns of duration dependence identified by the Kaplan-Meier models.
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