A dynamic random effects probit model is estimated on the first six waves of the German Socio-Economic Panel to test for state dependence effects in male unemployment behaviour. Estimation of the model is based on the marginal likelihood approach. In the model an individual's unemployment...

Unemployment duration data derived from retrospective surveys often show an abnormal concentration of responses at certain durations. This common kind of measurement error is known as "heaping" in the statistical literature. Although heaping effects may lead to severe biases in estimated...