Unemployment and Under-Employment: The Case of Switzerland

I analyse unemployment and subsequent employment history for Switzerland. Using administrative panel data, I estimate a discrete time hazard model for the exit from different labor market states. I find that having previously experienced unemployment increases the risk of persistent unemployment. A further analysis shows that the "higher-risk" unemployed (the female, foreign and less skilled workers) are prone to remain trapped in bad situations or to experience employment instability. On the contrary, the male, younger and skilled workers are more likely to exit from unemployment and if they experience earnings losses, it is more for transitory periods.