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 …

Labor market frictions are not the only possible factor responsible for high unemployment. Credit market imperfections … European and US unemployment differ so much when labor markets have become more similar at the margin in Europe and the US. To …