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The Effects of Unemployment on Subsequent Earnings: A Study of British Men 1984-94

Author

Listed:
  • Gregory, M.
  • Jukes, R.

Abstract

This paper estimattes the impact of unemployment on subsequent earnings for a large and repesentative sample of British men, 1984094. Unemploymentincidence is found to have only a temporary effect, an average earnings setback of 10% on re-engagement largely eroding over two years. The effect of unemployment duration is permanent, a one-year spell adding a further 10 % penalty. These penalties are least for young men and the low paid- those most at risk of unemployment- and greatest for prime age and highly paid men. The effects have changed little over the ten years.

Suggested Citation

  • Gregory, M. & Jukes, R., 1997. "The Effects of Unemployment on Subsequent Earnings: A Study of British Men 1984-94," Papers 21, Centre for Economic Performance & Institute of Economics.
    • Handle: RePEc:fth:cepies:21
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    Citations

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    Cited by:

    1. Alan Manning, 1999. "Pretty Vacant: Recruitment in Low Wage Labour Markets," CEP Discussion Papers dp0418, Centre for Economic Performance, LSE.
    2. Bruce Chapman & Matthew Gray, 2002. "Youth Unemployment: Aggregate Incidence and Consequences for Individuals," CEPR Discussion Papers 459, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    3. Burda, Michael C. & Mertens, Antje, 2001. "Estimating wage losses of displaced workers in Germany," Labour Economics, Elsevier, vol. 8(1), pages 15-41, January.
    4. Matthew Gray, 2000. "The Effects of Unemployment on the Earnings of Young Australians," CEPR Discussion Papers 419, Centre for Economic Policy Research, Research School of Economics, Australian National University.

    More about this item

    Keywords

    UNEMPLOYMENT;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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