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The unemployment is a serious problem of all developed economies. There is a wide range of analyses of this phenomenon, especially of its rate and duration, from different points of view in economic or statistical literature. In this contribution the probability distribution of unemployment duration in the Czech Republic is analysed. The model of finite mixtures of probability distributions is used to model the distribution of unemployment duration and to describe (and quantify) differences of its distribution in subgroups of the unemployed given by factor explanatory variables gender (with two levels) and education (with three levels). The impact of the choice of component probability distributions on the estimates of survival and hazard functions and the estimates of population characteristics of location and variability based on quantiles is treated. Data from Labour Force Sample Survey performed quarterly by the Czech Statistical Office are used in order to find maximum likelihood estimates of component parameters in subpopulations and mixing proportions. Frequently used positively skewed distributions (lognormal, loglogistic, gamma and Weibull) are used and quality of different fits is compared. The positive impact of education on the unemployment spell as well as gender gap will be quantified and shown in figures. The lognormal distribution appears to be the best of analysed distributions.

The Use of Finite Mixture Model for Describing Differences in Unemployment Duration