Unemployment Duration in Rural Romania

Abstract

The purpose of this study is to analyze characteristics of rural unemployment spells and exit destinations in Romania. In a recent paper we proved the existence of an urban-rural gap regarding unemployment spells and exit destinations. Unemployed individuals from rural area have a 37.7% lower exit to a job hazard compared with individuals from urban area, the reference category. The motivation behind choosing this topic was to understand the characteristics of rural registered unemployment spells, to estimate the impact of factors influencing unemployment spells and exit destinations and to identify vulnerable groups regarding reemployment on the labor market. The results can be useful for policy makers, in order to elaborate coherent measures for improving the rural employability and chances of vulnerable individuals. The empirical analysis is based on a large micro-dataset with 1224901 rural unemployment spells registered at the National Agency of Employment Romania during January 1st 2008 – December 31st 2010 and all ongoing spells until April 30th 2011. Non-parametric estimation of survival function and semi-parametric Cox regression was used as a methodological approach.