This study explores the relation between a worker’s job duration and prior labour market
experience. Hazard models are estimated using data on employment spells for the population
aged 25 to 64 years in Australia from the HILDA survey (waves 1 to 7). A worker’s labour
force state immediately preceding an employment spell is found to have a significant effect
on the likelihood of exit from employment, as well as the exit destination and whether the
exit is involuntary. In particular, previously being unemployed or having experienced
involuntary separation from a job is associated with worse subsequent employment outcomes.
To develop further insights into the role of labour market history a hazard model for exit from
unemployment is also estimated, and the results contrasted with those from the employment
model.