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

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  • Anthony Lepinteur

    (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Andrew E. Clark

    () (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

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

  • Anthony Lepinteur & Andrew E. Clark, 2019. "The causes and consequences of early-adult unemployment: Evidence from cohort data," PSE-Ecole d'économie de Paris (Postprint) halshs-02489770, HAL.
  • Handle: RePEc:hal:pseptp:halshs-02489770
    DOI: 10.1016/j.jebo.2019.08.020
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-02489770
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    Cited by:

    1. 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).
    2. 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).
    3. Andrew E. Clark & Conchita d'Ambrosio & Rong Zhu, 2020. "Living in the Shadow of the Past: Financial Profiles and Well-Being," PSE Working Papers halshs-02497067, HAL.
    4. Breitkopf, Laura & Chowdhury, Shyamal K. & Priyam, Shambhavi & Schildberg-Hörisch, Hannah & Sutter, Matthias, 2020. "Do economic preferences of children predict behavior?," DICE Discussion Papers 342, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    5. 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).
    6. 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..
    7. 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

    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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