The Effects of Unemployment on Subsequent Earnings: A Study of British Men 1984-94
AbstractThis 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 InfoPaper 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:
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Postal: United Kingdom; Centre for Economic Performance & Institute of Economics and Statistics, Oxford University. Manor Road. Oxford OX1 3Ul
Web page: http://www.economics.ox.ac.uk/
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Find related papers by JEL classification:
- E24 - Macroeconomics and Monetary Economics - - 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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- Bruce Chapman & Matthew Gray, 2004.
"Youth Unemployment: Aggregate Incidence and Consequences for Individuals,"
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- Bruce Chapman & Matthew Gray, 2002. "Youth Unemployment: Aggregate Incidence and Consequences for Individuals," CEPR Discussion Papers 459, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- 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.
- Alan Manning, 1999.
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dp0418, Centre for Economic Performance, LSE.
- Manning, Alan, 2000. " Pretty Vacant: Recruitment in Low-Wage Labour Markets," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(0), pages 747-70, Special I.
- Alan Manning, 1999. "Pretty vacant: recruitment in low wage labour markets," LSE Research Online Documents on Economics 20231, London School of Economics and Political Science, LSE Library.
- Burda, Michael C. & Mertens, Antje, 1999.
"Estimating wage losses of displaced workers in Germany,"
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- Burda, Michael C. & Mertens, Antje, 2001. "Estimating wage losses of displaced workers in Germany," Labour Economics, Elsevier, vol. 8(1), pages 15-41, January.
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