Discussion paper

DP11852 The Wounds That Do Not Heal. The Life-time Scar of Youth Unemployment

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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Citation

De Fraja, G and J Rockey (2017), ‘DP11852 The Wounds That Do Not Heal. The Life-time Scar of Youth Unemployment‘, CEPR Discussion Paper No. 11852. CEPR Press, Paris & London. https://cepr.org/publications/dp11852