Scarring effects of the first labour market experience: A sibling based analysis
The paper studies the relationship between teenagers’ first labour market experience and subsequent labour market performance using data on all Swedish youths graduating from vocational high school programmes in 1991–94. Sibling fixed-effects combined with detailed data on high school programmes, grades and work experience during high school are used in order to identify the causal long-run effects of experiencing unemployment subsequent to graduation. The results show a 3 percentage-points increase in the unemployment probability and a 17 % reduction in annual earnings after 5 years due to post-graduation unemployment. The results thus show that teenage labour market failure is in fact costly even though most teenagers have relatively short unemployment spells.
|Date of creation:||10 Nov 2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (+46) 18 - 471 70 70
Fax: (+46) 18 - 471 70 71
Web page: http://www.ifau.se/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bruce C. Fallick, 1995.
"A review of the recent empirical literature on displaced workers,"
Finance and Economics Discussion Series
95-14, Board of Governors of the Federal Reserve System (U.S.).
- Bruce C. Fallick, 1996. "A review of the recent empirical literature on displaced workers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 50(1), pages 5-16, October.
- Heckman, James J & Borjas, George J, 1980. "Does Unemployment Cause Future Unemployment? Definitions, Questions and Answers from a Continuous Time Model of Heterogeneity and State Dependence," Economica, London School of Economics and Political Science, vol. 47(187), pages 247-83, August.
- Marcus Eliason & Donald Storrie, 2003.
"The Echo of Job Displacement,"
William Davidson Institute Working Papers Series
2003-618, William Davidson Institute at the University of Michigan.
- David T. Ellwood, 1982. "Teenage Unemployment: Permanent Scars or Temporary Blemishes?," NBER Chapters, in: The Youth Labor Market Problem: Its Nature, Causes, and Consequences, pages 349-390 National Bureau of Economic Research, Inc.
- Jonas Agell & Helge Bennmarker, 2002.
"Wage Policy and Endogenous Wage Rigidity: A Representative View From the Inside,"
CESifo Working Paper Series
751, CESifo Group Munich.
- Agell, Jonas & Bennmarker, Helge, 2002. "Wage Policy and Endogenous Wage Rigidity: A Representative View from the Inside," Research Papers in Economics 2002:12, Stockholm University, Department of Economics.
- Agell, Jonas & Bennmarker, Helge, 2002. "Wage policy and endogenous wage rigidity: a representative view from the inside," Working Paper Series 2002:12, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Andrew Clark & Yannis Georgellis & Peter Sanfey, 1999.
"Scarring: The Psychological Impact of Past Unemployment,"
Studies in Economics
9903, School of Economics, University of Kent.
- Clark, Andrew E & Georgellis, Yannis & Sanfey, Peter, 2001. "Scarring: The Psychological Impact of Past Unemployment," Economica, London School of Economics and Political Science, vol. 68(270), pages 221-41, May.
- Stutzer, Alois & Lalive, Rafael, 2001.
"The Role of Social Work Norms in Job Searching and Subjective Well-Being,"
IZA Discussion Papers
300, Institute for the Study of Labor (IZA).
- Alois Stutzer & Rafael Lalive, 2004. "The Role of Social Work Norms in Job Searching and Subjective Well-Being," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 696-719, 06.
- Alois Stutzer & Rafael Lalive, . "The Role of Social Work Norms in Job Searching and Subjective Well-Being," IEW - Working Papers 051, Institute for Empirical Research in Economics - University of Zurich.
- Eriksson, Stefan & Lagerström, Jonas, 2004.
"Competition between employed and unemployed job applicants: Swedish evidence,"
Working Paper Series
2004:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Stefan Eriksson & Jonas Lagerström, 2006. "Competition between Employed and Unemployed Job Applicants: Swedish Evidence," Scandinavian Journal of Economics, Wiley Blackwell, vol. 108(3), pages 373-396, October.
- Arulampalam, Wiji, 2000.
"Is Unemployment Really Scarring? Effects of Unemployment Experiences on Wages,"
IZA Discussion Papers
189, Institute for the Study of Labor (IZA).
- Arulampalam, Wiji, 2001. "Is Unemployment Really Scarring? Effects of Unemployment Experiences on Wages," Economic Journal, Royal Economic Society, vol. 111(475), pages F585-606, November.
- Holmlund, Bertil, 2003.
"The Rise and Fall of Swedish Unemployment,"
Working Paper Series
2003:13, Uppsala University, Department of Economics.
- Hedström, Peter & Kolm, Ann-Sofie & Åberg, Yvonne, 2003.
"Social interactions and unemployment,"
Working Paper Series
2003:15, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Arulampalam, Wiji, 2002. "State Dependence in Unemployment Incidence: Evidence for British Men Revisited," IZA Discussion Papers 630, Institute for the Study of Labor (IZA).
- Thomas A. Mroz & Timothy H. Savage, 2006. "The Long-Term Effects of Youth Unemployment," Journal of Human Resources, University of Wisconsin Press, vol. 41(2).
- Muhleisen, Martin & Zimmermann, Klaus F., 1994. "A panel analysis of job changes and unemployment," European Economic Review, Elsevier, vol. 38(3-4), pages 793-801, April.
- Griliches, Zvi, 1979. "Sibling Models and Data in Economics: Beginnings of a Survey," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages S37-64, October.
- repec:ese:iserwp:2004-20 is not listed on IDEAS
- John Bound & Gary Solon, 1998.
"Double Trouble: On the Value of Twins-Based Estimation of the Return to Schooling,"
NBER Working Papers
6721, National Bureau of Economic Research, Inc.
- Bound, John & Solon, Gary, 1999. "Double trouble: on the value of twins-based estimation of the return to schooling," Economics of Education Review, Elsevier, vol. 18(2), pages 169-182, April.
- Ekström, Erika, 2002. "The value of a third year in upper secondary vocational education - Evidence from a piloting scheme," Working Paper Series 2002:23, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Hakkinen, Iida, 2006.
"Working while enrolled in a university: does it pay?,"
Elsevier, vol. 13(2), pages 167-189, April.
- Häkkinen, Iida, 2004. "Working while enrolled in a university: Does it pay?," Working Paper Series 2004:1, Uppsala University, Department of Economics.
- Gregg, Paul, 2001. "The Impact of Youth Unemployment on Adult Unemployment in the NCDS," Economic Journal, Royal Economic Society, vol. 111(475), pages F626-53, November.
- Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
- Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.
- 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.
- Knights, Stephen & Harris, Mark N & Loundes, Joanne, 2002. "Dynamic Relationships in the Australian Labour Market: Heterogeneity and State Dependence," The Economic Record, The Economic Society of Australia, vol. 78(242), pages 284-98, September.
- Beaudry, Paul & DiNardo, John, 1991. "The Effect of Implicit Contracts on the Movement of Wages over the Business Cycle: Evidence from Micro Data," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 665-88, August.
When requesting a correction, please mention this item's handle: RePEc:hhs:ifauwp:2004_014. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Margareta Wicklander)
If references are entirely missing, you can add them using this form.