Trends in Unemployment Duration Data

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Abstract
A method of estimating the distribution of uninterrupted unemployment spells from aggregate unemployment data is outlined. The methodology does not impose constant individual hazard rates and allows for heterogeneity. Characteristics of the distribution of unemployment spells are then considered including hazard rates, and allows for heterogeneity. Characteristics of the distribution of unemployment spells are then considered including hazard rates, measures of inequality such as Gini coefficients and the fraction of total unemployment associated with S weeks of unemployment. The relationship between these characteristics and labor demand variables (GNP) and supply-side variables (transfer payments, unemployment insurance) is considered in order to better understand the relative role of short- and long-run unemployment.
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