This study examines the unemployment experiences of young men in the United Kingdom over the period 1982.IV-1998.I. The empirical results show that repeated unemployment is a dominant feature of the UK labour market and that individual heterogeneity affects mainly the incidence of unemployment and only to a much lesser extent the duration of unemployment. We estimate that about 73% of the young unemployed find stable employment before the age of 35. The remaining 27%, concentrated among the lower-skilled, keep returning into unemployment, suggesting structural employment instability. These findings imply that a labour market programme targeted at increasing the employability of the young unemployed would yield long-term benefits by not only getting them out of unemployment but also keeping them out of unemployment. Copyright 2004 Blackwell Publishing Ltd.
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