The Scarring Effects of Unemployment: Evidence from the Netherlands, 1980-2000
نویسنده
چکیده
This paper uses longitudinal data from the Dutch OSA Labor Supply Panel (1980-2000) to examine the phenomenon of unemployment scarring in the Netherlands. The study extends current research by not only asking if earlier unemployment damages subsequent employment careers and wages but also explores variation by the level of unemployment insurance benefits and key individual characteristics such as sex, workers’ education level and age. Results from a series of dynamic panel models demonstrate that unemployment not only increases the probability of individuals to re-experience unemployment, but it also imposes a penalty upon their re-employment wages, which grows larger over time. In addition, we find that the level of unemployment scarring: (i) depends on multiple job loss, and recency of unemployment, (ii) is stronger and more persistent among women, and (iii) is mitigated by age, and receipt of UI benefits.
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Unemployment scarring by gender: Human capital depreciation or stigmatization? Longitudinal evidence from the Netherlands, 1980-2000.
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