Do the Rich Stay Unemployed Longer? An Empirical Study for the UK
Elena Stancanelli
(1, 2, 3, 4, 5, 6)
Résumé
This paper investigates the impact of individual asset holdings on the probability of leaving unemployment. According to the theory, higher levels of financial wealth will result in higher reservation wages and longer unemployment durations. I estimate the impact of financial assets on the hazard rate, using data for Great Britain. The empirical findings indicate that individual asset holdings affect significantly the escape rate out of unemployment. In particular, negative (positive) levels of wealth increase (reduce) the hazard of leaving unemployment. The size of the impact is, however, rather small. Increasing by 100% the level of wealth of a representative individual, with net wealth and other individual characteristics equal to the sample mean, increases the duration of the unemployment spell by half a week.
Domaines
Economies et financesFormat du dépôt | Notice |
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Type de dépôt | Article dans une revue |
Titre |
en
Do the Rich Stay Unemployed Longer? An Empirical Study for the UK
|
Résumé |
en
This paper investigates the impact of individual asset holdings on the probability of leaving unemployment. According to the theory, higher levels of financial wealth will result in higher reservation wages and longer unemployment durations. I estimate the impact of financial assets on the hazard rate, using data for Great Britain. The empirical findings indicate that individual asset holdings affect significantly the escape rate out of unemployment. In particular, negative (positive) levels of wealth increase (reduce) the hazard of leaving unemployment. The size of the impact is, however, rather small. Increasing by 100% the level of wealth of a representative individual, with net wealth and other individual characteristics equal to the sample mean, increases the duration of the unemployment spell by half a week.
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Auteur(s) |
Elena Stancanelli
1, 2, 3, 4, 5, 6
1
THEMA -
Théorie économique, modélisation et applications
( 10592 )
- 33, boulevard du Port 95011 Cergy-Pontoise Cedex
- France
2
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
3
CES -
Centre d'économie de la Sorbonne
( 15080 )
- Maison des Sciences Économiques - 106-112 Boulevard de l'Hôpital - 75647 Paris Cedex 13
- France
4
OFCE -
Observatoire français des conjonctures économiques (Sciences Po)
( 250936 )
- 10 place de Catalogne - 75014 Paris
- France
5
PJSE -
Paris-Jourdan Sciences Economiques
( 1312 )
- 48 boulevard Jourdan 75014 Paris
- France
6
IZA -
Institute for the Study of Labor
( 103374 )
- Bonn
- Allemagne
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Public visé |
Scientifique
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Langue du document |
Anglais
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Nom de la revue |
|
Vulgarisation |
Non
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Comité de lecture |
Oui
|
Audience |
Non spécifiée
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Date de publication |
1999-08
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Volume |
61
|
Numéro |
3
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Page/Identifiant |
295 - 314
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Domaine(s) |
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Référence interne |
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DOI | 10.1111/1468-0084.00131 |
Spire (Sciences Po) | 2441/9667 |
UT key WOS | 000082097300001 |
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