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Unemployment persistence: Is there evidence for stigma effects?

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  • Biewen, Martin
  • Steffes, Susanne

Abstract

We explore the idea that a negative relationship between individual unemployment persistence and the business cycle can be interpreted as evidence for stigma effects. Our results suggest that there is weak evidence for stigma effects.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 106 (2010)
Issue (Month): 3 (March)
Pages: 188-190

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Handle: RePEc:eee:ecolet:v:106:y:2010:i:3:p:188-190

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: Unemployment persistence State dependence Human capital depreciation Stigma effects Scarring;

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References

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  1. Lockwood, Ben, 1991. "Information Externalities in the Labour Market and the Duration of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 58(4), pages 733-53, July.
  2. Andrew Clark & Yannis Georgellis & Peter Sanfey, 1999. "Scarring: The Psychological Impact of Past Unemployment," Studies in Economics 9903, Department of Economics, University of Kent.
  3. Biewen, Martin & Steffes, Susanne, 2010. "Unemployment persistence: Is there evidence for stigma effects?," Economics Letters, Elsevier, vol. 106(3), pages 188-190, March.
  4. Gibbons, Robert & Katz, Lawrence F., 1991. "Layoffs and Lemons," Scholarly Articles 3442782, Harvard University Department of Economics.
  5. Stephen Knights & Mark Harris & Joanne Loundes, 2000. "Dynamic Relationships in the Australian Labour Market: Heterogeneity and State Dependence," Melbourne Institute Working Paper Series wp2000n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  6. Kübler, Dorothea & Weizsäcker, Georg, 2001. "Information cascades on the labor market," SFB 373 Discussion Papers 2001,86, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  7. Omori, Yoshiaki, 1997. "Stigma Effects of Nonemployment," Economic Inquiry, Western Economic Association International, vol. 35(2), pages 394-416, April.
  8. Pissarides, Christopher A, 1992. "Loss of Skill during Unemployment and the Persistence of Employment Shocks," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1371-91, November.
  9. Oberholzer-Gee, Felix, 2008. "Nonemployment stigma as rational herding: A field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 65(1), pages 30-40, January.
  10. Vishwanath, Tara, 1989. "Job Search, Stigma Effect, and Escape Rate from Unemployment," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 487-502, October.
  11. Grund, Christian, 1999. "Stigma effects of layoffs?: Evidence from German micro-data," Economics Letters, Elsevier, vol. 64(2), pages 241-247, August.
  12. Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
  13. Blau, David M & Robins, Philip K, 1990. "Job Search Outcomes for the Employed and Unemployed," Journal of Political Economy, University of Chicago Press, vol. 98(3), pages 637-55, June.
  14. Gregg, Paul, 2001. "The Impact of Youth Unemployment on Adult Unemployment in the NCDS," Economic Journal, Royal Economic Society, vol. 111(475), pages F626-53, November.
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Citations

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Cited by:
  1. Manudeep Bhuller & Christian N. Brinch & Sebastian Königs, 2014. "Time aggregation and state dependence in welfare receipt," Discussion Papers 771, Research Department of Statistics Norway.
  2. M. Gaini & A. Leduc & A. Vicard, 2012. "A scarred generation? French evidence on young people entering into a tough labour market," Documents de Travail de la DESE - Working Papers of the DESE g2012-05, Institut National de la Statistique et des Etudes Economiques, DESE.
  3. Biewen, Martin & Steffes, Susanne, 2008. "Unemployment Persistence: Is There Evidence for Stigma Effects?," ZEW Discussion Papers 08-057, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Aretz, Bodo & Gürtzgen, Nicole, 2012. "The Evolution of Wage Mobility in the German Low-Wage Sector - Is There Evidence for Increasing State Dependence?," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62049, Verein für Socialpolitik / German Economic Association.
  5. Niedergesäss, Markus, 2012. "Duration dependence, lagged duration dependence, and occurrence dependence in individual employment histories," University of Tuebingen Working Papers in Economics and Finance 26, University of Tuebingen, Faculty of Economics and Social Sciences.
  6. Mann, Stefan & Wüstemann, Henry, 2012. "The fading scope of labour – remarks about the lost rationale of a common term," MPRA Paper 39401, University Library of Munich, Germany.
  7. Øivind Anti Nilsen & Katrine Holm Reiso, 2011. "Scarring Effects of Unemployment," CESifo Working Paper Series 3675, CESifo Group Munich.
  8. Aretz, Bodo & Gürtzgen, Nicole, 2012. "What Explains the Decline in Wage Mobility in the German Low-Wage Sector?," IZA Discussion Papers 7046, Institute for the Study of Labor (IZA).
  9. Mosthaf, Alexander, 2011. "Low-wage jobs - stepping stones or just bad signals?," IAB Discussion Paper 201111, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  10. Achatz, Juliane & Trappmann, Mark, 2011. "Arbeitsmarktvermittelte Abgänge aus der Grundsicherung : der Einfluss von personen- und haushaltsgebundenen Barrieren," IAB Discussion Paper 201102, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  11. Zabel, Cordula, 2013. "Effects of participating in skill training and workfare on employment entries for lone mothers receiving means-tested benefits in Germany," IAB Discussion Paper 201303, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  12. Block, Joern & Kohn, Karsten, 2011. "Sozialpolitische Ziele der Gründungsförderung am Beispiel von Gründungen aus der Arbeitslosigkeit
    [Social policy as a motivation for start-up subsidies: supporting start-ups out of unemployment]
    ," MPRA Paper 30775, University Library of Munich, Germany.

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