Discussion Paper Details

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Title: The Wounds That Do Not Heal. The Life-time Scar of Youth Unemployment

Author(s): Gianni De Fraja, Sara Lemos and James Rockey

Publication Date: February 2017

Keyword(s): Lifetime earnings, Scarring effect. and youth unemployment

Programme Area(s): Labour Economics and Public Economics

Abstract: This paper finds that unemployment shocks affect young workers for the rest of their lives. This scar of youth unemployment is concentrated in the first few years after entry in the labour market: one month of unemployment at age 18-20 cause a permanent income loss of 2%. However, unemployment after that age has no long term effect.

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Bibliographic Reference

De Fraja, G, Lemos, S and Rockey, J. 2017. 'The Wounds That Do Not Heal. The Life-time Scar of Youth Unemployment'. London, Centre for Economic Policy Research.