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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 school up to age 30. We show that 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," CEPREMAP Working Papers (Docweb) 1904, CEPREMAP.
  • Handle: RePEc:cpm:docweb:1904
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    Cited by:

    1. Menta, Giorgia & Lepinteur, Anthony & Clark, Andrew E. & Ghislandi, Simone & D’Ambrosio, Conchita, 2021. "Maternal depression and child human capital: A genetic instrumental-variable approach," CEPREMAP Working Papers (Docweb) 2107, CEPREMAP.
    2. Breitkopf, Laura & Chowdhury, Shyamal K. & Priyam, Shambhavi & Schildberg-Hörisch, Hannah & Sutter, Matthias, 2020. "Do economic preferences of children predict behavior?," DICE Discussion Papers 342, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    3. Andrew E. Clark & Conchita D'Ambrosio & Rong Zhu, 2021. "Living in the Shadow of the Past: Financial Profiles and Well‐Being," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(3), pages 910-939, July.
    4. Ivanov, Boris & Pfeiffer, Friedhelm & Pohlan, Laura, 2020. "Do job creation schemes improve the social integration and well-being of the long-term unemployed?," Labour Economics, Elsevier, vol. 64(C).
    5. Alan Piper & David G. Blanchflower & Alex Bryson, 2021. "Does Pain Lead to Job Loss? A Panel Study for Germany," NBER Working Papers 28863, National Bureau of Economic Research, Inc.
    6. Sam Parsons & Alex Bryson & Alice Sullivan, 2021. "Teenage conduct problems: a lifetime of disadvantage in the labour market?," DoQSS Working Papers 21-22, Quantitative Social Science - UCL Social Research Institute, University College London.
    7. Briole, Simon & Le Forner, Hélène & Lepinteur, Anthony, 2020. "Children’s socio-emotional skills: Is there a quantity–quality trade-off?," Labour Economics, Elsevier, vol. 64(C).
    8. Hélène Le Forner, 2021. "Formation of Children’s Cognitive and Socio-Emotional Skills: Is All Parental Time Equal?," AMSE Working Papers 2117, Aix-Marseille School of Economics, France.
    9. Suppa, Nicolai, 2021. "Unemployment and subjective well-being," GLO Discussion Paper Series 760, Global Labor Organization (GLO).
    10. Lars Kunze & Nicolai Suppa, 2020. "Who Is Bowling Alone? Quantile Treatment Effects of Unemployment on Social Participation," SOEPpapers on Multidisciplinary Panel Data Research 1077, DIW Berlin, The German Socio-Economic Panel (SOEP).
    11. Ferdi Botha & John P. de New, 2020. "COVID-19 infections, labour market shocks, and subjective well-being," Melbourne Institute Working Paper Series wp2020n14, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    12. Maite Blázquez & Ana I. Moro Egido, 2020. "Financial insecurity and subjective well-being. Europe in crossnational perspective," ThE Papers 20/07, Department of Economic Theory and Economic History of the University of Granada..
    13. Beata Bal-Domańska, 2022. "The impact of macroeconomic and structural factors on the unemployment of young women and men," Economic Change and Restructuring, Springer, vol. 55(2), pages 1141-1172, May.
    14. Cobb-Clark, Deborah A. & Dahmann, Sarah C. & Kamhöfer, Daniel A. & Schildberg-Hörisch, Hannah, 2022. "The Predictive Power of Self-Control for Life Outcomes," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 725-744.
    15. Dirk Bethmann & Robert Rudolf, 2021. "The paradox of wealthy nations' unhappy adolescents," Discussion Paper Series 2101, Institute of Economic Research, Korea University.
    16. Carol Graham, 2005. "The Economics of Happiness," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 6(3), pages 41-55, July.

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    More about this item

    Keywords

    Formation de la famille; offre de travail féminin; récession;
    All these keywords.

    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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