TITLE

UNEMPLOYMENT AND SUBSEQUENT EARNINGS: ESTIMATING SCARRING AMONG BRITISH MEN 1984-94*

AUTHOR(S)
Gregory, Mary; Jukes, Robert
PUB. DATE
November 2001
SOURCE
Economic Journal;Nov2001, Vol. 111 Issue 475, p607
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This paper estimates the impact of unemployment on earnings following re-employment for a large and representative sample of British men, 1984-94. Unemployment incidence is found to have only a temporary effect, an average earnings setback of 10% on initial re-engagement largely eroding over two years. The effect of unemployment duration, by contrast, is permanent, a one-year spell adding a further penalty of 10 percentage points. These wage penalties are least for young men and the low paid – those most at risk of unemployment – and greatest for prime age and highly paid men.
ACCESSION #
5487036

 

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