A scarred generation? French evidence on young people entering into a tough labour market
AbstractThe late 2000s recession has hit youth very hard, lowering the employment and wage prospects of the entrants into the labour market. In this paper, we address the question of the persistence of these adverse shocks faced by young people who enter into the labour market during an economic downturn, focusing on the French case. Using the French Labour Force Surveys for the cohorts entering the labour market between 1982 and 2009 (which includes more than two entire business cycles), we find no long term effect on wage or employment of having entered the labour market during an economic crisis. "Unlucky" young people completing their studies during a recession have lower employment rates, are more often part-time and temporary workers, but catch-up with "lucky" one within 3 years. This fast catch-up contrasts with results for other countries. Potential explanations for those differences are twofold: first, in France a large share of young entrants are paid at the minimum wage and, second, young people unemployment is high in France, so that unemployment at entry on the labour market may be less often used as a screening device by employers.
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Bibliographic InfoPaper provided by Institut National de la Statistique et des Etudes Economiques, DESE in its series Documents de Travail de la DESE - Working Papers of the DESE with number g2012-05.
Date of creation: 2012
Date of revision:
Scarring effect; Business cycle; Initial labour market conditions;
Find related papers by JEL classification:
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-08-23 (All new papers)
- NEP-LAB-2012-08-23 (Labour Economics)
- NEP-LMA-2012-08-23 (Labor Markets - Supply, Demand, & Wages)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Au mauvais endroit au mauvais moment? Le devenir des primo-entrants sur un marchÃ© du travail en crise
by firstname.lastname@example.org (Arthur Heim) in BS Initiative on 2014-06-17 08:09:18
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