Combining Micro and Macro Unemployment Duration Data

We combine micro and macro unemployment duration data to study the e ects of the business cycle on the out ow from unemployment. We allow the cycle to a ect individual exit probabilities of unemployed workers as well as the composition of the total in ow into unemployment. We estimate the model using (micro) survey data and (macro) administrative data from France. The distribution of the in ow composition is estimated along with the other parameters. The estimation method deals with differences between the micro and macro unemployment de nitions. The results also show to what extent the unemployment duration distributions corresponding to the two de nitions can be described by the same model. Free University Amsterdam, Tinbergen Institute and CEPR. yFree University Amsterdam and Tinbergen Institute. Address: Department of Economics, Free University Amsterdam, De Boelelaan 1105, NL{1081 HV Amsterdam, The Netherlands.