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The causes and consequences of early-adult unemployment: Evidence from cohort data

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  • Clark, Andrew E.
  • Lepinteur, Anthony

Abstract

We here use the employment-history data from the British Cohort Study to calculate an individual's total experience of unemployment from the time they left education up to age 30. We show that, conditional on current unemployment, this experience is negatively correlated with the life satisfaction that the individual reports at age 30, so that past unemployment scars. We also identify the childhood circumstances and family background that predict this adult unemployment experience. Educational achievement and good behaviour at age 16 both reduce adult unemployment experience, and emotional health at age 16 is a particularly strong predictor of unemployment experience for women. Both boys and girls reproduce on average their parents’ unemployment, so that adult unemployment experience is transmitted between generations. We uncover evidence of a social-norm effect: children from less-advantaged backgrounds both experience more adult unemployment but are less affected by it in well-being.

Suggested Citation

  • Clark, Andrew E. & Lepinteur, Anthony, 2019. "The causes and consequences of early-adult unemployment: Evidence from cohort data," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 107-124.
  • Handle: RePEc:eee:jeborg:v:166:y:2019:i:c:p:107-124
    DOI: 10.1016/j.jebo.2019.08.020
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Simon Briole & Hélène Le Forner & Anthony Lepinteur, 2019. "Child's Socio-Emotional Skills: Is There a Quantity-Quality Trade-off?," Working Papers halshs-02331899, HAL.
    2. Simon Briole & Hélène Le Forner & Anthony Lepinteur, 2019. "Child's Socio-Emotional Skills: Is There a Quantity-Quality Trade-off?," Working Papers halshs-02331899, HAL.
    3. Ivanov, Boris & Pfeiffer, Friedhelm & Pohlan, Laura, 2019. "Do job creation schemes improve the social integration and well-being of the long-term unemployed?," ZEW Discussion Papers 19-048, ZEW - Leibniz Centre for European Economic Research.

    More about this item

    Keywords

    Unemployment; Life satisfaction; Childhood; Social norms;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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