Arbetsrapport, Institutet för Framtidsstudier - Institute for Futures Studies
Unemployment and subsequent earnings for Swedish college graduates. A study of scarring effects
Abstract: The purpose of this paper is to study the long term
effects of the college-to-work transition. The results reveal that
unemployment immediately upon graduation has substantial and permanent
effects on individual future earnings. Even for very short unemployment
spells, estimated effects are statistically significant. These results are
stable for the inclusion of a rich set of observable control variables,
including grade point average from high school and parental educational
level, and for choice of method i.e. OLS and propensity score matching.
Keywords: Scarring; State dependence; Higher education; College-to-work; (follow links to similar papers)
JEL-Codes: J24; J31; J64; (follow links to similar papers)
37 pages, January 2009
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