Working paper 99/011 - Abstract

The Class of '81: The Effects of Early-career Unemployment on Subsequent Unemployment Experiences

Simon Burgess, Carol Propper, Hedley Rees* and Arran Shearer

*Department of Economics, University of Bristol

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 a small enduring adverse effect; for the more skilled, there is a small beneficial effect.

Published in Labour Economics 10 (3) 291-311 (2003)

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