model that allows for duration dependence in the exit rate from unemployment and for transitions between employment (E …We explore the extent to which composition, duration dependence, and labor force non-participation can account for the … sharp increase in the incidence of long-term unemployment (LTU) during the Great Recession. We first show that compositional …

accessibility to appropriate jobs should shorten the duration of unemployment. We focus on lower-income workers with strong labor … that better job accessibility significantly decreases the duration of joblessness among lower-paid displaced workers …

, when a Brownian motion with drift hits a barrier. This implies that the duration of each worker's jobless spells has an … prove that the distribution of these parameters is identified from the duration of two spells. We use social security data … for Austrian workers to estimate the model. We conclude that dynamic selection is a critical source of duration dependence …