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The labour market impacts of leaving education when unemployment is high: evidence from Britain

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  • P. Taylor, Mark

Abstract

We estimate the effects of initial labour market entry conditions on a range of subsequent job outcomes for men and women who entered the British labour market between 1991 and 2009, using data from the British Household Panel Survey and its successor Understanding Society. We find that the unemployment rate on leaving full-time education has large impacts on initial labour market outcomes including status, wages and employment stability, which persist over the subsequent ten years. These effects are more pronounced for men than women and indicate that young people entering the labour market during the current period of economic stagnation will suffer a lasting scar as a consequence.

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  • P. Taylor, Mark, 2013. "The labour market impacts of leaving education when unemployment is high: evidence from Britain," ISER Working Paper Series 2013-12, Institute for Social and Economic Research.
    • Handle: RePEc:ese:iserwp:2013-12
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    Cited by:

    1. International Labour Organization., 2015. "Global employment trends for youth 2015 : scaling up investments in decent jobs for youth," Global Employment Trends Reports 994891803402676, International Labour Office, Economic and Labour Market Analysis Department.
    2. Inés Berniell & Leonardo Gasparini & Mariana Marchionni & Mariana Viollaz, 2022. "Lucky Women in Unlucky Cohorts: Gender Differences in the Effects of Initial Labor Market Conditions in Latin America," CEDLAS, Working Papers 0294, CEDLAS, Universidad Nacional de La Plata.
    3. Till von Wachter, 2020. "The Persistent Effects of Initial Labor Market Conditions for Young Adults and Their Sources," Journal of Economic Perspectives, American Economic Association, vol. 34(4), pages 168-194, Fall.
    4. Jake Anders & Andy Dickerson & Paul Gregg & Lindsey Macmillan, 2020. "Unemployment: The Coming Storm, Who Gets Hit, Who Gets Hurt, and Policy Remedies," CEPEO Working Paper Series 20-12, UCL Centre for Education Policy and Equalising Opportunities, revised Jul 2020.
    5. Costas-Fernández, Julián & Morando, Greta & Holford, Angus, 2023. "The effect of foreign students in higher education on native students’ outcomes," European Economic Review, Elsevier, vol. 160(C).
    6. Cockx, Bart & Ghirelli, Corinna, 2016. "Scars of recessions in a rigid labor market," Labour Economics, Elsevier, vol. 41(C), pages 162-176.
    7. Berniell, Inés & Gasparini, Leonardo & Marchionni, Mariana & Viollaz, Mariana, 2023. "Lucky women in unlucky cohorts," Journal of Development Economics, Elsevier, vol. 161(C).
    8. Jake Anders & Lindsey Macmillan, 2020. "The unequal scarring effects of a recession on young people's life chances," CEPEO Briefing Note Series 6, UCL Centre for Education Policy and Equalising Opportunities, revised Jun 2020.

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