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Abstract for:

The Class of '81: The effects of early-career unemployment on subsequent unemployment experiences

Simon Burgess,  Carol Propper,  Hedley Rees,  Arran Shearer,  December 1999
Paper No' CASE 032: Full paper (pdf)
Tags: employment and income; employment and the labour market; methodology, concepts and measures; measurement, concepts and measures; unemployment; scarring; pseudo-cohorts

Abstract:

We examine whether unemployment early in an individual's career influences her later employment prospects. We use six years of the LFS to create pseudo-cohorts and exploit cross-cohort variation in unemployment at school-leaving age to identify this. We find heterogeneous responses: for the unskilled, there is evidence of an enduring adverse effect; for the more skilled, there is a small beneficial effect.