Abstract
In this study the mover–stayer models of transition intensities and labour mobility are
examined using Finnish microeconomic data on unemployment durations. Duration models
are used to analyse the probabilities of transition. The probabilities of becoming employed,
moving to another region and changing occupations are estimated using censored data on
unemployment durations. The models are based on a Gompertz distribution, which yields
estimates of the proportion of unemployed persons who become employed, move or change
occupations. Allowance for neglected heterogeneity is made assuming that the effect of
omitted variables has a gamma distribution across persons. Ó 2002 Elsevier Science B.V.
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