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Unemployment and subsequent earnings for Swedish college graduates. A study of scarring effects

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Abstract

The purpose of this paper is to study the long term effects of the college-to-work transition. The results reveal that unemployment immediately upon graduation has substantial and permanent effects on individual future earnings. Even for very short unemployment spells, estimated effects are statistically significant. These results are stable for the inclusion of a rich set of observable control variables, including grade point average from high school and parental educational level, and for choice of method i.e. OLS and propensity score matching.

Suggested Citation

  • Gartell, Marie, 2009. "Unemployment and subsequent earnings for Swedish college graduates. A study of scarring effects," Arbetsrapport 2009:2, Institute for Futures Studies.
    • Handle: RePEc:hhs:ifswps:2009_002
    Note: ISSN:1652-120X; ISBN:978-91-85619-41-2
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    File URL: http://www.framtidsstudier.se/wp-content/uploads/2011/01/20090224102052filjHlp2YEJ9euqTAH9Oy98.pdf
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    Cited by:

    1. M. Gartell, 2012. "The college-to-work transition during the 1990s: evidence from Sweden," Applied Economics, Taylor & Francis Journals, vol. 44(11), pages 1449-1469, April.
    2. Filomena, Mattia & Giorgetti, Isabella & Picchio, Matteo, 2022. "Off to a Bad Start: Youth Nonemployment and Labor Market Outcomes Later in Life," IZA Discussion Papers 15366, Institute of Labor Economics (IZA).
    3. Gartell, Marie, 2009. "Stability of college rankings - A study of relative earnings estimates applying different methods and models on Swedish data," Working Paper Series 2009:19, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    4. Corinna Ghirelli, 2015. "Scars of early non-employment for low educated youth: evidence and policy lessons from Belgium," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-34, December.
    5. Dimitrios Kotroyannos & Kostas A. Lavdas & Nikos Papadakis & Argyris Kyridis & Panagiotis Theodirikakos & Stylianos Ioannis Tzagkarakis & Maria Drakaki, 2015. "An Individuality in Parenthesis? Social Vulnerability, Youth and the Welfare State in Crisis: On the Case of Neets, In Greece, Within the European Context," Studies in Social Sciences and Humanities, Research Academy of Social Sciences, vol. 3(5), pages 268-279.
    6. Mattia Filomena, 2021. "Unemployment Scarring Effects: A Symposium On Empirical Literature," Working Papers 453, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    7. Matteo Picchio & Stefano Staffolani, 2019. "Does apprenticeship improve job opportunities? A regression discontinuity approach," Empirical Economics, Springer, vol. 56(1), pages 23-60, January.
    8. Fujii, Mayu & Shiraishi, Kousuke & Takayama, Noriyuki, 2013. "The Determinants and Effects of Early Job Separation in Japan," CIS Discussion paper series 590, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    9. Corinna GHIRELLI, 2015. "Scars of early non-employment in a rigid labour market," LIDAM Discussion Papers IRES 2015008, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    10. Corinna.Ghirelli, 2014. "The scarring effect of early non-employment," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 14/895, Ghent University, Faculty of Economics and Business Administration.

    More about this item

    Keywords

    Scarring; State dependence; Higher education; College-to-work;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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