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Scarring Effects of the First Labor Market Experience

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  • Nordström Skans, Oskar

    ()
    (Uppsala University)

Abstract

The paper studies the relationship between teenagers' first labor market experience and subsequent labor market performance using data on all Swedish youths graduating from vocational high schools in the recession years of 1991-94. Sibling fixed-effects combined with detailed data on high school programs, grades and work experience during high school are used in order to identify the causal long-run effects of post-graduation unemployment. The results show significant scarring effects resulting in higher risks of unemployment up to 5 years later. The results imply that poor labor market performance as a teenager result in persistent, but not permanent, negative effects.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5565.

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Length: 40 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:iza:izadps:dp5565

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Related research

Keywords: youth unemployment; scarring; state dependence; siblings;

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References

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  1. Kolm, Ann-Sofie, 2005. "Work norms and unemployment," Economics Letters, Elsevier, vol. 88(3), pages 426-431, September.
  2. Stephen Knights & Mark Harris & Joanne Loundes, 2000. "Dynamic Relationships in the Australian Labour Market: Heterogeneity and State Dependence," Melbourne Institute Working Paper Series wp2000n06, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  3. Andrew Clark & Yannis Georgellis & Peter Sanfey, 1999. "Scarring: The Psychological Impact of Past Unemployment," Studies in Economics 9903, Department of Economics, University of Kent.
  4. Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
  5. Louis S. Jacobson & Robert J. LaLonde & Daniel Sullivan, 1992. "Earnings Losses of Displaced Workers," Upjohn Working Papers and Journal Articles 92-11, W.E. Upjohn Institute for Employment Research.
  6. Burgess, Simon & Propper, Carol & Rees, Hedley & Shearer, Arran, 2003. "The class of 1981: the effects of early career unemployment on subsequent unemployment experiences," Labour Economics, Elsevier, vol. 10(3), pages 291-309, June.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Au mauvais endroit au mauvais moment? Le devenir des primo-entrants sur un marché du travail en crise
    by arthur.heim@education.gouv.fr (Arthur Heim) in BS Initiative on 2014-06-17 08:09:18
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Cited by:
  1. M. Gaini & A. Leduc & A. Vicard, 2012. "A scarred generation? French evidence on young people entering into a tough labour market," Documents de Travail de la DESE - Working Papers of the DESE g2012-05, Institut National de la Statistique et des Etudes Economiques, DESE.
  2. Nordin , Martin, 2014. "Does Eligibility for Tertiary Education Affect Crime Rates? Quasi-Experimental Evidence," Working Papers 2014:14, Lund University, Department of Economics.
  3. Niebuhr, Annekatrin & Buch, Tanja, 2013. "Wage effects of labor market entry via temporary work agency employment - evidence for German apprenticeship graduates," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79818, Verein für Socialpolitik / German Economic Association.
  4. Caroline Hall, 2012. "The Effects of Reducing Tracking in Upper Secondary School: Evidence from a Large-Scale Pilot Scheme," Journal of Human Resources, University of Wisconsin Press, vol. 47(1), pages 237-269.
  5. Björklund, Anders, 2006. "Family Background and Outcomes Later in Life: A (Partial and Personal) Survey of Recent Research Using Swedish Register Data," Working Paper Series 4/2007, Swedish Institute for Social Research.
  6. Jorge A. Paz, 2012. "Desempleo juvenil en la Argentina durante la recuperación económica," Working Papers 9, Instituto de Estudios Laborales y del Desarrollo Económico (IELDE) - Universidad Nacional de Salta - Facultad de Ciencias Económicas, Jurídicas y Sociales.

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