We use Norwegian register data from 1989 to 2002 to estimate the causal effects of programme participation on the transition rate from unemployment to employment,by means of a dependent risks hazard rate model. The separate roles of causality and unobserved heterogeneity are non-parametrically...

Empirical and theoretical studies suggest that employment behaviour varies with the state of the labour market since hiring and firings costs depend on the availability of labour. Extending earlier empirical work on this subject, we test for state dependence in employment adjustment and in the...