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the unemployment spell in this more closed sector. However,
the second panel of Table 4 also shows that the effect of
experience does not show up either in the more "open" sector
where lay off is not indicated. Presumably, in the more
open sector, experience as such does not discriminate among
different employment processes.
Return to the same employer, of course, could also take
place in the open sector. Another definition can be
obtained by grouping together spells covered by unemployment
compensation the closed sector. Correspondingly, those
spells where compensation was not received are classified
as the more irregular or open sector. Since we here cannot
use amount of compensation as a variable, only experience
and race are included as independent variables. The results
are presented in Table 5.
———---------
Table 5 Here
———--------.
In the more regular, closed sector, none of the independent
variables have an effect. In the more open, irregular
sector, race, shows very strong effects, while as before with
return to the same employer, experience makes little
difference. Note also that the rates of reemployment are
very much higher in the more closed sector than in the more
open sector.
CONCLUSION
This paper has shown that unemployment processes are quite
heterogeneous according to employment sector. Using
indirect indicators to identify sectors it is demonstrated
that in the more closed employment sector of the labor
market, the duration of unemployment processes is less