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The class of '81: the effects of early-career unemployment on subsequent unemployment experiences

Author

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  • Burgess, Simon
  • Propper, Carol
  • Rees, Hedley
  • Shearer, Arran

Abstract

We examine whether unemployment early in an individual's career influences her later employment prospects. We use six years of the LFS to create pseudo-cohorts and exploit cross-cohort variation in unemployment at school-leaving age to identify this. We find heterogeneous responses: for the unskilled, there is evidence of an enduring adverse effect; for the more skilled, there is a small beneficial effect.

Suggested Citation

  • Burgess, Simon & Propper, Carol & Rees, Hedley & Shearer, Arran, 1999. "The class of '81: the effects of early-career unemployment on subsequent unemployment experiences," LSE Research Online Documents on Economics 6478, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:6478
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    File URL: http://eprints.lse.ac.uk/6478/
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    References listed on IDEAS

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    1. Andrew Clark & Yannis Georgellis & Peter Sanfey, "undated". "Job Satisfaction, Wage changes and Quits: Evidence from Germany," Economics and Finance Discussion Papers 98-06, Economics and Finance Section, School of Social Sciences, Brunel University.
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    7. Rosella Gardecki & David Neumark, 1998. "Order from Chaos? The Effects of Early Labor Market Experiences on Adult Labor Market Outcomes," ILR Review, Cornell University, ILR School, vol. 51(2), pages 299-322, January.
    8. Micklewright, J & Mark Pearson & Stephen Smith, 1989. "Has Britain an early school-leaving problem?," Fiscal Studies, Institute for Fiscal Studies, vol. 10(1), pages 1-16, February.
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    10. Micklewright, John & Pearson, Mark & Smith, Stephen, 1990. "Unemployment and Early School Leaving," Economic Journal, Royal Economic Society, vol. 100(400), pages 163-169, Supplemen.
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    Cited by:

    1. repec:lan:wpaper:4467 is not listed on IDEAS
    2. Liu, Kai & Salvanes, Kjell G. & Sørensen, Erik Ø., 2016. "Good skills in bad times: Cyclical skill mismatch and the long-term effects of graduating in a recession," European Economic Review, Elsevier, vol. 84(C), pages 3-17.
    3. Shahin Yaqub, 2002. "'Poor children grow into poor adults': harmful mechanisms or over-deterministic theory?," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(8), pages 1081-1093.
    4. Raaum, Oddbjørn & Røed, Knut, 2003. "Do Business Cycle Conditions at the Time of Labour Market Entry Affect Future Unemployment?," Memorandum 12/2002, Oslo University, Department of Economics.
    5. repec:lan:wpaper:4769 is not listed on IDEAS
    6. Caliendo, Marco & Künn, Steffen & Schmidl, Ricarda, 2011. "Fighting Youth Unemployment: The Effects of Active Labor Market Policies," IZA Discussion Papers 6222, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Unemployment; scarring; pseudo-cohorts;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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