January 2015

IZA DP No. 8819: A Note on Unemployment Persistence and Quantile Parameter Heterogeneity

Corrado Andini, Monica Andini

extended version published in: Macroeconomic Dynamics, 2018, 22 (5), 1298-1320

The standard approach to the estimation of unemployment persistence assumes that quantile parameter heterogeneity does not matter. Using panel quantile autoregression techniques on state-level data for the United States (1980-2010), we suggest that it does.