This paper proposes a new approach for analyzing the relationship between macroeconomic factors and the income distribution. The conventional method of analysis is regression of summary inequality indices on variables such as the unemployment and inflation rates. Building on the lessons from...

Mixed proportional hazard models are commonly used to estimate duration dependence and unobserved heterogeneity in unemployment exit rates. Some strong assumptions are made in this framework, i.e. that the various influences on the individual unemployment exit rate are separable. The model we...