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Decomposing two values of a binary variable: Application to the unemployment differential in Hungary
Journal article   Peer reviewed

Decomposing two values of a binary variable: Application to the unemployment differential in Hungary

Applied economics, Vol.31(12), pp.1609-1621
01/12/1999

Abstract

Comparative studies Differences Discriminant analysis Economic models Economic theory Females Labor economics Males Unemployment Variables
The individual determinants of unemployment in Hungary are studied. An attempt is made to understand the reasons why Hungarian women were, in 1992, less likely to be unemployed than their male counterparts. The probability of being in the stock of unemployment and one particular inflow into unemployment are estimated. Adapting standard discrimination analysis to the case of binary variables, the differential in average unemployment rates by gender is decomposed. It is shown that differences in individual endowments account for very little of the gender gap in the stock of unemployment.

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