This paper examines the determinants of unemployment duration in a competing risks framework with two destination … states, namely, inactivity and employment. The major innovation is our recognition of defective risks. We first use a … unemployment. Although we do not reject the null of proportionality, abandoning the proportionality assumption does not materially …

We combine micro and macro unemployment duration data to study the effects of the business cycle on the outflow from … unemployment. We allow the cycle to affect individual exit probabilities of unemployed workers as well as the composition of the … total inflow into unemployment. We estimate the model using (micro) survey data and (macro) administrative data from France …