Re-employment hazard of displaced German workers: evidence from the GSOEP
Getinet Astatike Haile
This study investigates the re-employment hazard of displaced German workers. It uses data from the first fourteen sweeps of the German Socio-Economic Panel (GSOEP) survey for the purpose. The paper employs both parametric and non-parametric discrete-time models to study the re-employment hazard. Alternative mixing distributions have also been used to account for unobserved heterogeneity. Results based on single risk models show that the average hazard rate of exit via re-employment declines with the duration of time in unemployment. Accounting for unobserved heterogeneity does make a difference, but the crux of the results in terms of duration dependence remains largely unchanged. In terms of covariate effects, those at the lower end of the skills ladder, those who had been working in the manufacturing industry and those with previous experience of inactivity are found to have lower hazard of exit via re-employment. That those at the lower end of the skills ladder and those with previous experience of inactivity have difficulty getting re-employed calls for appropriate intervention to ameliorate the lot of the 'disadvantaged'.
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