Specification Tests for the Competing Risks Duration Model: An Application to Unemployment Duration and Sectoral Movement.

This study develops three specification tests for the competing risks duration model. They include a general test for misspecification and specific tests for heterogeneity and defective risk distributions. The last two tests involve null hypotheses located on the boundary of the parameter space and the authors consider alternative formulations of the score test to take account of this. The tests are applied to models of unemployment duration in which displaced job seekers may become reemployed in the preunemployment industry or switch industries. Copyright 1995 by Blackwell Publishing Ltd