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Author: Botosaru, Irene
Resulting in 1 citation.
1. Botosaru, Irene
Duration Models with Stochastic Unobserved Heterogeneity
Ph.D. Dissertation, Yale University, 2011
Cohort(s): NLSY79
Publisher: ProQuest Dissertations & Theses (PQDT)
Keyword(s): Heterogeneity; Modeling; Unemployment; Wealth

Permission to reprint the abstract has not been received from the publisher.

The third chapter presents a model of unemployment duration in which individuals exit the unemployment spell when their perceived monetary and non-monetary losses due to unemployment are greater than a threshold level. The threshold combines both the individuals' perceived wage offer distribution and their self-imposed limits on the amount of losses they are willing to sustain during the spell. The model is applied to data from the NLSY79. The empirical application finds that for some groups of individuals, the sunk cost effect weakens over time, while for others, it does not. For some groups, differences in transition rates are driven by differences in initial net wealth, while for others, by differences in sensitivity to losses.
Bibliography Citation
Botosaru, Irene. Duration Models with Stochastic Unobserved Heterogeneity. Ph.D. Dissertation, Yale University, 2011.