Analysis of Transition Data by the Minimum-Chi-Square Method: An Application to Welfare Spells in Belgium

In this paper we analyze transition data by means of the minimum-chi-square (MCS) method instead of the more commonly used maximum-likelihood (ML) method. The analysis includes exits to multiple destinations and unmeasured heterogeneity. In the empirical application, turnover in the welfare system i...

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Bibliographic Details
Published in:The review of economics and statistics Vol. 79; no. 3; pp. 392 - 405
Main Author: Cockx, Bart L. W.
Format: Journal Article
Language:English
Published: 238 Main St., Suite 500, Cambridge, MA 02142-1046, USA MIT Press 01-08-1997
Harvard University Press, etc
MIT Press Journals, The
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Summary:In this paper we analyze transition data by means of the minimum-chi-square (MCS) method instead of the more commonly used maximum-likelihood (ML) method. The analysis includes exits to multiple destinations and unmeasured heterogeneity. In the empirical application, turnover in the welfare system in Belgium is found to be very high. Median duration is 4.5 months for men and 7 months for women, although these figures overstate turnover in that exits out of welfare include those occurring as a consequence of recipients moving to another municipality while remaining on welfare.
Bibliography:August, 1997
ISSN:0034-6535
1530-9142
DOI:10.1162/003465300556986