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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Paper provided by Centre for Economic Performance & Institute of Economics in its series Papers with number
21.
Length: 23 pages Date of creation: 1997 Date of revision: Handle: RePEc:fth:cepies:21
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Find related papers by JEL classification: E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
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