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Stigma Effects of Nonemployment

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  • Omori, Yoshiaki

Abstract

Do longer past spells of nonemployment cause longer future spells? If so, what is the likely cause, stigma or human capital decay? The author examines a sample of 10,245 spells of nonemployment experienced by 2,184 young men. After controlling for unobserved heterogeneity, he finds an increase in the duration of previous nonemployment lengthens the expected duration of future nonemployment. But the lower the local unemployment rate was when past nonemployment occurred, the larger is this effect. The finding supports the stigma hypothesis that workers who experience nonemployment when proportionately fewer are nonemployed are more severely stigmatized. Copyright 1997 by Oxford University Press.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 35 (1997)
Issue (Month): 2 (April)
Pages: 394-416

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Handle: RePEc:oup:ecinqu:v:35:y:1997:i:2:p:394-416

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Cited by:
  1. de Koning, Jaap & Kroes, Hassel & van der Steen, Alex, 2006. "Patterns of work and use of benefits over the life course: Estimates and simulations based on Dutch microdata," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2006-112, Social Science Research Center Berlin (WZB).
  2. 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].
  3. Paul Frijters, 2000. "Persistencies in the Labor Market," Econometric Society World Congress 2000 Contributed Papers 1303, Econometric Society.
  4. 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).
  5. repec:lan:wpaper:1023 is not listed on IDEAS
  6. Pozzoli, Dario, 2008. "The Transition to Work for Italian University Graduates," Working Papers 08-8, University of Aarhus, Aarhus School of Business, Department of Economics.
  7. Biewen, Martin & Steffes, Susanne, 2010. "Unemployment persistence: Is there evidence for stigma effects?," Economics Letters, Elsevier, vol. 106(3), pages 188-190, March.
  8. Bemjamin Villena-Roldan, 2009. "Aggregate Implications of Employer Search and Recruiting Selection," 2009 Meeting Papers 97, Society for Economic Dynamics.
  9. Stewart, Mark, 2006. "The Inter-related Dynamics of Unemployment and Low-Wage Employment," The Warwick Economics Research Paper Series (TWERPS) 741, University of Warwick, Department of Economics.
  10. World Bank, 2011. "Emerging Europe and Central Asia - Opportunities for men and women," World Bank Other Operational Studies 2820, The World Bank.
  11. Van den Berg, Gerard J., 2000. "Duration Models: Specification, Identification, and Multiple Durations," MPRA Paper 9446, University Library of Munich, Germany.
  12. Bratberg, Espen & Nilsen, Øivind Anti, 1998. "Transition from School to Work: Search Time and Job Duration," IZA Discussion Papers 27, Institute for the Study of Labor (IZA).
  13. José Arranz & Olga Cantó, 2012. "Measuring the effect of spell recurrence on poverty dynamics—evidence from Spain," Journal of Economic Inequality, Springer, vol. 10(2), pages 191-217, June.
  14. Sarosh Sattar, 2011. "Opportunities for Men and Women : Emerging Europe and Central Asia," World Bank Other Operational Studies 2800, The World Bank.
  15. 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.
  16. Welters, Riccardo & Muysken, Joan, 2008. "Inferring Employer Search Behaviour from Wage Subsidy Participation," Labour Economics, Elsevier, vol. 15(5), pages 844-858, October.
  17. J Taylor & A N Nguyen, 2003. "Transition from school to first job: the influence of educational attainment," Working Papers 540112, Lancaster University Management School, Economics Department.

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