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The Class of '81: The effects of early-career unemployment on subsequent unemployment experiences

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  • Simon Burgess
  • Carol Propper
  • Hedley Rees
  • Arran Shearer

Abstract

We examine whether unemployment early in an individual's career influences her later employment prospects. We use six years of the LFS to create pseudo-cohorts and exploit cross-cohort variation in unemployment at school-leaving age to identify this. We find heterogeneous responses: for the unskilled, there is evidence of an enduring adverse effect; for the more skilled, there is a small beneficial effect.

Suggested Citation

  • Simon Burgess & Carol Propper & Hedley Rees & Arran Shearer, 1999. "The Class of '81: The effects of early-career unemployment on subsequent unemployment experiences," CASE Papers 032, Centre for Analysis of Social Exclusion, LSE.
    • Handle: RePEc:cep:sticas:032
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    File URL: https://sticerd.lse.ac.uk/dps/case/cp/CASEpaper32.pdf
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    References listed on IDEAS

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    Cited by:

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    2. Caliendo, Marco & Künn, Steffen & Schmidl, Ricarda, 2011. "Fighting Youth Unemployment: The Effects of Active Labor Market Policies," IZA Discussion Papers 6222, Institute of Labor Economics (IZA).
    3. Liu, Kai & Salvanes, Kjell G. & Sørensen, Erik Ø., 2016. "Good skills in bad times: Cyclical skill mismatch and the long-term effects of graduating in a recession," European Economic Review, Elsevier, vol. 84(C), pages 3-17.
    4. Shahin Yaqub, 2002. "'Poor children grow into poor adults': harmful mechanisms or over-deterministic theory?," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(8), pages 1081-1093.
    5. 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.
    6. repec:lan:wpaper:4769 is not listed on IDEAS

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    More about this item

    Keywords

    Unemployment; scarring; pseudo-cohorts;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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