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Scarring Effects of the First Labor Market Experience

Author

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  • Nordström Skans, Oskar

    (Uppsala University)

Abstract

The paper studies the relationship between teenagers' first labor market experience and subsequent labor market performance using data on all Swedish youths graduating from vocational high schools in the recession years of 1991-94. Sibling fixed-effects combined with detailed data on high school programs, grades and work experience during high school are used in order to identify the causal long-run effects of post-graduation unemployment. The results show significant scarring effects resulting in higher risks of unemployment up to 5 years later. The results imply that poor labor market performance as a teenager result in persistent, but not permanent, negative effects.

Suggested Citation

  • Nordström Skans, Oskar, 2011. "Scarring Effects of the First Labor Market Experience," IZA Discussion Papers 5565, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5565
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    References listed on IDEAS

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    1. 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 221-241, May.
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    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Au mauvais endroit au mauvais moment? Le devenir des primo-entrants sur un marché du travail en crise
      by arthur.heim@education.gouv.fr (Arthur Heim) in BS Initiative on 2014-06-17 13:09:18

    Citations

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    Cited by:

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    3. Knutsson, Daniel & Tyrefors, Björn, 2024. "Labor Market Effects of a Youth Summer Employment Program in Sweden," Working Paper Series 1485, Research Institute of Industrial Economics.
    4. Möller Joachim & Umkehrer Matthias, 2015. "Are there Long-Term Earnings Scars from Youth Unemployment in Germany?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(4-5), pages 474-498, August.
    5. Danielle Venn, 2018. "Indigenous youth employment and the school-to-work transition," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 21(3), pages 209-227.
    6. di Porto, Edoardo & Tealdi, Cristina, 2022. "Heterogeneous Paths to Stability," IZA Discussion Papers 15246, Institute of Labor Economics (IZA).
    7. Nordin , Martin, 2014. "Does Eligibility for Tertiary Education Affect Crime Rates? Quasi-Experimental Evidence," Working Papers 2014:14, Lund University, Department of Economics.
    8. von Buxhoeveden, Mathias, 2019. "Unemployment insurance and youth labor market entry," Working Paper Series 2019:12, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    9. Giulia Martina Tanzi, 2023. "Scars of Youth Non-employment and Labour Market Conditions," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(2), pages 475-499, July.
    10. López-Martín Bernabé & Takayama Naoki, 2015. "The Blighted Youth: The Impact of Recessions and Policies on Life-Cycle Unemployment," Working Papers 2015-22, Banco de México.
    11. Giulia Martina Tanzi, 2020. "Scars of youth non-employment and labour market conditions," Temi di discussione (Economic working papers) 1312, Bank of Italy, Economic Research and International Relations Area.
    12. Hall, Caroline, 2016. "Does more general education reduce the risk of future unemployment? Evidence from an expansion of vocational upper secondary education," Economics of Education Review, Elsevier, vol. 52(C), pages 251-271.
    13. Verho, Jouko, 2017. "Economic crises and unemployment persistence: Analysis of job losses during the Finnish 1990s recession," Working Papers 99, VATT Institute for Economic Research.
    14. Jorge A. Paz, 2012. "Desempleo juvenil en la Argentina durante la recuperación económica," Working Papers 9, Instituto de Estudios Laborales y del Desarrollo Económico (IELDE) - Universidad Nacional de Salta - Facultad de Ciencias Económicas, Jurídicas y Sociales.
    15. Niebuhr, Annekatrin & Buch, Tanja, 2013. "Wage effects of labor market entry via temporary work agency employment - evidence for German apprenticeship graduates," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79818, Verein für Socialpolitik / German Economic Association.
    16. Björklund, Anders, 2006. "Family Background and Outcomes Later in Life: A (Partial and Personal) Survey of Recent Research Using Swedish Register Data," Working Paper Series 4/2007, Stockholm University, Swedish Institute for Social Research.
    17. 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.

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    More about this item

    Keywords

    youth unemployment; scarring; state dependence; siblings;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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