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Is Unemployment Really Scarring? Effects of Unemployment Experiences on Wages

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  • Arulampalam, Wiji

Abstract

Joblessness leaves permanent scars on individuals. They not only lose income during periods of joblessness they are also further scarred by these experiences when they find employment. A spell of unemployment is found to carry a wage penalty of about 6% on re-entry in Britain, and after three years, they are earning 14% less compared to what they would have received in the absence of unemployment. The scars are also carried into their second employment spell. The first spell of joblessness is found to cause the most damage. Redundancy seems to be less stigmatising.

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 111 (2001)
Issue (Month): 475 (November)
Pages: F585-606

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Handle: RePEc:ecj:econjl:v:111:y:2001:i:475:p:f585-606

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  1. The Cost of Recessions
    by Matthew E. Kahn in Environmental and Urban Economics on 2010-05-19 13:38:00
  2. "Unsustainable" economic activity
    by chris dillow in Stumbling and Mumbling on 2013-07-25 13:55:58
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