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The Effects of Unemployment on Subsequent Earnings: A Study of British Men 1984-94

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Author Info

  • Gregory, M.
  • Jukes, R.

Abstract

This paper estimattes the impact of unemployment on subsequent earnings for a large and repesentative sample of British men, 1984094. Unemploymentincidence is found to have only a temporary effect, an average earnings setback of 10% on re-engagement largely eroding over two years. The effect of unemployment duration is permanent, a one-year spell adding a further 10 % penalty. These penalties are least for young men and the low paid- those most at risk of unemployment- and greatest for prime age and highly paid men. The effects have changed little over the ten years.

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Bibliographic Info

Paper provided by Centre for Economic Performance & Institute of Economics in its series Papers with number 21.

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Length: 23 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:cepies:21

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Postal: United Kingdom; Centre for Economic Performance & Institute of Economics and Statistics, Oxford University. Manor Road. Oxford OX1 3Ul
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Web page: http://www.economics.ox.ac.uk/
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Related research

Keywords: UNEMPLOYMENT;

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Cited by:
  1. Bruce Chapman & Matthew Gray, 2004. "Youth Unemployment: Aggregate Incidence and Consequences for Individuals," Labor and Demography 0408001, EconWPA.
  2. Matthew Gray, 2000. "The Effects of Unemployment on the Earnings of Young Australians," CEPR Discussion Papers 419, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  3. Alan Manning, 1999. "Pretty Vacant: Recruitment in Low Wage Labour Markets," CEP Discussion Papers dp0418, Centre for Economic Performance, LSE.
  4. Burda, Michael C. & Mertens, Antje, 1999. "Estimating wage losses of displaced workers in Germany," SFB 373 Discussion Papers 1999,35, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.

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