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)
