TY  - RPRT
        AU  - Frijters, Paul
AU  - Lindeboom, Maarten
AU  - Berg, Gerard J. van den
        TI  - Persistencies in the Labour Market
        PY  - 2009/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 4025
        UR  - https://www.iza.org/publications/dp4025
        AB  - Using longitudinal income-tax registers, we study how past labour market outcomes affect current labour market transition rates. We focus on hysteresis effects of the durations and incidence of previous spells out of work. We estimate flexible multi-state Mixed Proportional Hazard specifications for transition rates between employment, unemployment, and welfare/non-participation. Our main finding is that after longer periods of employment with high income, individuals' transition rates from unemployment to employment increase. Longer periods of non-employment generally decrease future transition rates to work, and sometimes also from work. The quantitative magnitude of persistency and hysteresis effects on inequality is modest.
        KW  - duration analysis
KW  - hysteresis
KW  - inequality
KW  - wages
KW  - unemployment
KW  - hazard rates
KW  - employment
KW  - income
KW  - work
        ER  -