Scarring effects of remaining unemployed for long‐term unemployed school‐leavers
By Bart Cockx, Matteo Picchio. Social Science Research Network, 2013
112 citations recorded by the source corpus.
Summary. This study investigates whether and to what extent further unemployment experience for youths who are already long term unemployed imposes a penalty on subsequent labour market outcomes. We propose a flexible method for analysing the effect on wages aside from transitions from unemployment and employment within a multivariate duration model which controls for selection on observables and unobservables. We find that prolonging unemployment drastically decreases the chances of finding employment but hardly affects the quality of subsequent employment. The analysis suggests that negative duration dependence in the job finding rate is induced by negative signalling and not by human capital depreciation.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/20761fb259dff8e65f81dba38c31c0b2779352a1
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In Economics and Econometrics
Citations in the corpus
- This Time It's Different? Youth Labour Markets during ‘The Great Recession’ (2012, unknown): “…the regularity with which such scarring has been found, at least in the European context, as well as more recent attempts to control for these selectivity effects suggest that there really is a scarring effect that goes beyond unobserved individual heterogeneity (eg Cockx and Picchio, 2011).”
- Youth Unemployment in Belgium: Diagnosis and Key Remedies (2013, unknown): “Baert and Cockx (2013) and Baert et al. (2013) analyze this problem in detail and show that discrimination is an important explanatory factor.”
- Youth unemployment and active labor market policies in Europe (2016, background): “Cockx and Picchio (2013) further suggest that stigmatization rather than the depreciation of human capital may be the source of state-dependence in long-term unemployment among youth.”