Politická ekonomie
Politická ekonomie
Prague Economic Papers
University of Economics, Prague

Prague Economic Papers Vol. 26 No. 4

Modelling of Unemployment Duration in the Czech Republic

DOI: https://doi.org/10.18267/j.pep.620

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Adam Čabla, Ivana Malá

The paper examines the duration of unemployment in the Czech Republic in the three selected years (2008, 2010 and 2014). It is based on the Czech Statistical Office data collected from the Labour Force Sample Survey. Lognormal probability distribution (unimodal positively skewed heavy-tailed distribution) is used in the Accelerated Failure Time regression model including the following factor explanatory variables: years (three levels, 2008, 2010, 2014), gender (two levels), education (four levels), five-year age groups (nine levels) and municipality size (five levels). Apart from this parametric model, Turnbull’s nonparametric estimator of the survival function is evaluated for subsamples defined by the year, gender and education. The effects of education and gender – a strong positive one of the former and less significant one of the latter, respectively – are quantified and assessed.

Keywords: AFT model, interval censored data, Turnbull’s estimator, unemployment duration

JEL Classification: C41, E24, J64

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