DP11852 The Wounds That Do Not Heal. The Life-time Scar of Youth Unemployment
|Author(s):||Gianni De Fraja, Sara Lemos, James Rockey|
|Publication Date:||February 2017|
|Keyword(s):||Lifetime earnings, Scarring effect, youth unemployment|
|Programme Areas:||Labour Economics, Public Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=11852|
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.