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Do Business Cycle Conditions at the Time of Labour Market Entry Affect Future Unemployment?

Author

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  • Raaum, Oddbjørn

    (The Ragnar Frisch Centre for Economic Research)

  • Røed, Knut

    (The Ragnar Frisch Centre for Economic Research)

Abstract

Labour market conditions at the time and place of potential entry into the labour market are shown to have a substantial and persistent impact on adult labour market performance. Birth cohorts that face particularly depressed labour markets when they graduate from primary- and/or secondary education are – other things equal - subject to relatively high rates of unemployment during their whole prime-age work career. Building on a unique combination of micro- and macro data from Norway, we show that these effects are robust with respect to model-specifications and conditioning variables, and that they are not limited to particularly disadvantaged groups of workers.

Suggested Citation

  • Raaum, Oddbjørn & Røed, Knut, 2003. "Do Business Cycle Conditions at the Time of Labour Market Entry Affect Future Unemployment?," Memorandum 12/2002, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2002_012
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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2002/Memo-12-2002.pdf
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    References listed on IDEAS

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    Cited by:

    1. Nilsen, Øivind A. & Reiso, Katrine Holm, 2011. "Scarring effects of unemployment," Discussion Paper Series in Economics 26/2011, Norwegian School of Economics, Department of Economics.
    2. Justesen, Michael, 2008. "Is the window of opportunity closing for Brazilian youth? Labor market trends and business cycle effects," Social Protection Discussion Papers and Notes 47188, The World Bank.
    3. Raaum, Oddbjørn & Rogstad, Jon & Røed, Knut & Westlie, Lars, 2009. "Young and out: An application of a prospects-based concept of social exclusion," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(1), pages 173-187, January.

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    More about this item

    Keywords

    Unemployment; Marginalisation; Scarring.;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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