AN EMPIRICAL-MODEL OF JOB-TO-JOB TRANSITION WITH SELF-SELECTIVITY

The statistical relationship between accepted job duration and the job -to-job transition strategy chosen by job quitters is analysed using p arametric duration methods. Because job quitters can sort themselves b etween unemployed and employed search, the labour-market state occupie d before acceptance of a new job must contain information about the se arch-preferred strategy. The results show that jobs preceded by unempl oyment tend to be shorter but also reveal a substantial amount of hete rogeneity when the sample is split between those having comparative ad vantages in unemployed search and those with comparative advantages in employed search. However, even for those who have comparative advanta ges in unemployed search, choosing unemployment does not seem to raise subsequent job duration.