GIANNI DE FRAJA Gianni.DeFraja@nottingham.ac.uk
Professor of Economics
The Wounds That Do Not Heal: The Lifetime Scar of Youth Unemployment
De Fraja, Gianni; Lemos, Sara; Rockey, James
Authors
Sara Lemos
James Rockey
Abstract
This paper uses UK administrative data to study the long-term effects of unemployment on earnings. It is the first paper to pinpoint accurately the relative importance of the timing of employment shocks within workers' lives. We find a strong effect of events in the first few years after entry into the labour market: each month of unemployment between ages 18 and 20 causes a permanent income loss of 1.2% per year. This scar effect of youth unemployment is lower when it happens when the worker's age is between 21 and 23, and it disappears altogether in the next three-year age period. The scar effect is most severe for individuals at the lower end of the ability distribution.
Citation
De Fraja, G., Lemos, S., & Rockey, J. (2021). The Wounds That Do Not Heal: The Lifetime Scar of Youth Unemployment. Economica, 88(352), 896-941. https://doi.org/10.1111/ecca.12384
Journal Article Type | Article |
---|---|
Acceptance Date | May 25, 2021 |
Online Publication Date | Aug 4, 2021 |
Publication Date | 2021-10 |
Deposit Date | May 26, 2021 |
Publicly Available Date | Aug 5, 2023 |
Journal | Economica |
Print ISSN | 0013-0427 |
Electronic ISSN | 1468-0335 |
Publisher | Wiley |
Peer Reviewed | Peer Reviewed |
Volume | 88 |
Issue | 352 |
Pages | 896-941 |
DOI | https://doi.org/10.1111/ecca.12384 |
Keywords | Youth unemployment; Lifetime earnings; Scarring effect |
Public URL | https://nottingham-repository.worktribe.com/output/5573819 |
Publisher URL | https://onlinelibrary.wiley.com/doi/10.1111/ecca.12384 |
Additional Information | This is the peer reviewed version of the following article: De Fraja, G., Lemos, S. and Rockey, J. (2021), The Wounds That Do Not Heal: The Lifetime Scar of Youth Unemployment. Economica, 88: 896-941 which has been published in final form at https://doi.org/10.1111/ecca.12384. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. |
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