The wage scar from male youth unemployment

Gregg, Paul; Tominey, Emma

doi:10.1016/j.labeco.2005.05.004

“…The negative impact matters more in the first years after graduation, but it persists up to 12 years later. This is in line with the ample evidence that experiencing unemployment (early in the career) inflicts long-term scars on labor market outcomes (e.g., Arulampalam, 2001;Gregg, 2001;Gregg and Tominey, 2005;Schmillen and Umkehrer, 2013).…”

Section: Introductionsupporting

confidence: 83%

Scars of recessions in a rigid labor market

Cockx

¹

,

Ghirelli

²

2016

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may Scars of Recessions in a Rigid Labor Market AbstractWe study the impact of graduating in a recession in Flanders (Belgium), i.e. in a rigid labor market. In the presence of a high minimum wage, a typical recession hardly influences the hourly wage of low educated men, but reduces working time and earnings by about 4.5% up to twelve years after graduation. For the high educated, the working time is not persistently affected, but the penalty on the hourly wage (and earnings) increases with experience, and attains roughly -6% ten years after labor market entry. We also contribute to the literature on inference with few clusters.

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“…Third, the youth unemployment problem is exacerbated by "scarring effects": prolonged unemployment spells leave scars in the form of long-term negative impacts on earnings, employment, and other labor market outcomes. These scarring effects hurt young workers disproportionately because they occur early in the lifecycle and their negative impacts multiply over time [2].…”

Section: Motivationmentioning

confidence: 99%

Youth market labor interventions

Kluve¹

2014

izawol

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.

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“…Gregg, 2001, andGregg andTominey, 2005). 3 Methodological difficulties with separating individual heterogeneity from 'true' duration dependence cast some doubt on the causal influence of early unemployment on later careers identified by early studies.…”

Section: Long-term Youth Unemploymentmentioning

confidence: 99%

This Time It's Different? Youth Labour Markets during ‘The Great Recession’

O’Higgins

¹

2012

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. This paper looks at the effects of the 'Great Recession' on young people's labour market experiences in the European Union. The paper documents some of the key characteristics of young people's labour market experiences during the current recession and then seeks to provide some explanations of these applying both cross-section and time series rolling regression models in order, in particular, to better understand the role of labour market institutions as a determining factor of differing experiences across countries. The analysis finds that labour market flexibility contributed significantly to the negative consequences felt by young people during the recession. JEL Classification:I28, J13, J23, J24

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The wage scar from male youth unemployment

Cited by 342 publications

References 9 publications

Scars of recessions in a rigid labor market

Scars of recessions in a rigid labor market

Youth market labor interventions

This Time It's Different? Youth Labour Markets during ‘The Great Recession’

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