Comparing long-term scarring effects of unemployment across countries: the impact of graduating during an economic downturn

Helbling, Laura Alexandra; Sacchi, Stefan; Imdorf, Christian

doi:10.4337/9781788118798.00011

Cited by 5 publications

(5 citation statements)

References 24 publications

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“…For young people, the significant disruption to education, training, labour market, and transition to adulthood has been compounded by significant increases in mental health problems, which exceed those recorded by other groups (Smyth and Nolan, 2022). Comparative research from earlier crises also indicates the long-term scarring effects of entering the labour market during a recession on young people's career (Scarpetta et al, 2010;Bell and Blanchflower, 2011;Helbling et al, 2019). For these reasons we might expect employment effects of the pandemic to be particularly sharp for younger people, as found by Montenovo et al (2022) for the US.…”

Section: Disparities By Agementioning

confidence: 99%

“…While there was considerable labour market disruption during the COVID-19 pandemic period, which varied according to health-related restrictions in place, it is by analysing the post-pandemic period that any more enduring impact can be assessed. Research on previous crises that have affected the labour market, such as the Great Recession, have shown that there can be longer-lasting scarring effects, though these effects are typically analysed 5, 10 or even 20 years later (Bell and Blanchflower, 2011;Regan, 2020;Helbling et al, 2019).…”

Section: Chapter 1 Introduction and International Evidencementioning

confidence: 99%

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The equality impact of the COVID-19 Pandemic on the Irish labour market

Alamir,

McGinnity,

Russell

2024

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is the first in the 2022-2024 IHREC/ESRI Research programme, but marks the eleventh published report since 2017 under the IHREC/ESRI Irish Human Rights and Equality Research Programme Series. These research reports examine equality and discrimination in Ireland across a wide range of themes and topics including inequality in the labour market, disability, caring and unpaid work, inequality in housing and attitudinal research towards diversity and migration in Ireland.These detailed studies continue to provide us with a better understanding of equality and discrimination in Ireland, expanding the boundaries of existing knowledge and guiding us towards new horizons of insight.On behalf of the Commission, I would like to acknowledge the ESRI and all of the researchers who worked on these studies and to thank you for your significant contribution to knowledge on equality and discrimination in Ireland. Eoin Ronayne, Irish Human Rights and Equality Commission

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Section: Disparities By Agementioning

confidence: 99%

Section: Chapter 1 Introduction and International Evidencementioning

confidence: 99%

The equality impact of the COVID-19 Pandemic on the Irish labour market

Alamir,

McGinnity,

Russell

2024

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“…From a macroeconomic point of view, the impact of a crisis or economic downturn on youth unemployment was analysed (e.g., by [31][32][33][34][35]), and the effects were seen negatively and mostly as long-term. For example, with regard to the financial crisis in 2008, the results of the study [35] show that the crisis affected the unemployment of young people for five years after the onset of the crises; however, most adverse effects were found in the second and third years after the financial crisis.…”

Section: Literature Reviewmentioning

confidence: 99%

Allowance for School Graduate Practice Performance in Slovakia: Impact Evaluation of the Intervention

Švábová

Kramárová

2022

Mathematics

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This study aims to evaluate the impact of a selected active labour market policy measure that has been applied in Slovakia—Allowance for school graduate practice performance—on the employability of young jobseekers and their sustainability in the labour market, and thus, it will also empirically contribute to the field of relevant literature. The policy targets unemployed school graduates, and it enables them to acquire professional skills and practical experience that corresponds with their level of education, work habits, and possible direct contact with potential employers. At the same time, this measure addresses a long-standing gap in the Slovakian education system, namely, the insufficient linkages between the educational process, the practices in the field, and the requirements of the labour market. Using fiscal resources to finance this policy, it provides a natural and logical platform to investigate the relevance of the outcome of this measure in the context of its proclaimed objectives. In light of this, we employed a counterfactual approach to compare the results of the participants who were affected the measure (recipients; treated group) and non-participants, as their counterparts (comparison/control group), using an instrumental variable to mitigate self-selection and selection-bias problems. Our findings show that this policy intervention has a short- or medium-term impact on the employability of unemployed school graduates and the sustainability of their careers. In addition, a positive impact on their monthly wages was observed. We also came to the conclusion that, assuming the measure is linked to other labour market policy interventions, which is aimed at employers that are willing to hire young unemployed people, it would be possible to improve the functionality and effectiveness of support for the unemployed through indirect measures.

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“…The key message emerging from much of the work on scarring effects is that experiencing an unemployment spell is associated with increased likelihood of future unemployment (Helbling et al, 2016). The broader labour market conditions in which an individual enters the labour market (Liu et al, 2016; Summerfield and Theodossiou, 2017) and engaging in ‘poor’ work (e.g.…”

Section: Researching Scarring Effectsmentioning

confidence: 99%

“…Demand- and supply-side factors may be driving mechanisms of scarring effects. However, while there is a good knowledge base on overall scarring effects, and differentiated group outcomes and protective factors, one key methodological challenge is the identification of causal effects (Helbling et al, 2016). Determining the psychological mechanisms through which unemployment affects later well-being presents a challenge (Daly and Delaney, 2013).…”

Section: Researching Scarring Effectsmentioning

confidence: 99%

A Capability Approach to Understand the Scarring Effects of Unemployment and Job Insecurity: Developing the Research Agenda

Egdell

Beck

2020

Work, Employment and Society

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Having a poor start in the labour market has a ‘scarring’ effect on future employment and well-being. Indeed, unemployment at any point of the life-course can scar. While there is extensive quantitative research examining scarring effects at the macro- and meso-levels, evidence regarding scarring from the micro-level that provides insights into individual perceptions, values, attitudes and capabilities, and how they shape employment trajectories is lacking. A qualitative approach which avoids the imposition of values and choices onto individuals’ employment trajectories, and accounts more fully for the contextual constraints which shape available options and choices, is argued for. In emphasising people’s substantive freedom of choice, which may be enabled or constrained by contextual conditions, the Capability Approach is proposed as providing a valuable lens to examine complex and insecure labour market transitions. Such an approach stands in contrast to the supply-side focused active labour market policies characteristic of neo-liberal welfare states.

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Comparing long-term scarring effects of unemployment across countries: the impact of graduating during an economic downturn

Cited by 5 publications

References 24 publications

The equality impact of the COVID-19 Pandemic on the Irish labour market

The equality impact of the COVID-19 Pandemic on the Irish labour market

Allowance for School Graduate Practice Performance in Slovakia: Impact Evaluation of the Intervention

A Capability Approach to Understand the Scarring Effects of Unemployment and Job Insecurity: Developing the Research Agenda

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