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Unemployment and subsequent earnings for Swedish college graduates: a study of scarring effects

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  • Gartell, Marie

    ()
    (Institute for Futures Studies)

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    Abstract

    Unemployment immediately upon graduation is associated with substantial and permanent future earnings losses. Even for very short unemployment spells the estimated earnings losses are statistically significant. These results are stable for the inclusion of a rich set of observable control variables, including grade point average from high school and parental educational level, and for choice of method i.e. OLS and propensity score matching. This lends some support for the interpretation that unemployment upon graduation has the causal effect of reducing future earnings prospects.

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    File URL: http://www.ifau.se/upload/pdf/se/2009/wp09-10.pdf
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    Bibliographic Info

    Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2009:10.

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    Length: 34 pages
    Date of creation: 23 Apr 2009
    Date of revision:
    Handle: RePEc:hhs:ifauwp:2009_010

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    Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
    Phone: (+46) 18 - 471 70 70
    Fax: (+46) 18 - 471 70 71
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    Web page: http://www.ifau.se/
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    Related research

    Keywords: Scarring; State dependence; Higher education; College-to-work;

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    Cited by:
    1. Fujii, Mayu & Shiraishi, Kousuke & Takayama, Noriyuki, 2013. "The Determinants and Effects of Early Job Separation in Japan," CIS Discussion paper series 590, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.

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