Scandinavian Working Papers in Economics

Working Paper Series,
IFAU - Institute for Evaluation of Labour Market and Education Policy

No 2004:14: Scarring effects of the first labour market experience: A sibling based analysis

Oskar Nordström Skans ()
Additional contact information
Oskar Nordström Skans: IFAU - Institute for Labour Market Policy Evaluation, Postal: P O Box 513, SE-751 20 Uppsala, Sweden

Abstract: The paper studies the relationship between teenagers’ first labour market experience and subsequent labour market performance using data on all Swedish youths graduating from vocational high school programmes in 1991–94. Sibling fixed-effects combined with detailed data on high school programmes, grades and work experience during high school are used in order to identify the causal long-run effects of experiencing unemployment subsequent to graduation. The results show a 3 percentage-points increase in the unemployment probability and a 17 % reduction in annual earnings after 5 years due to post-graduation unemployment. The results thus show that teenage labour market failure is in fact costly even though most teenagers have relatively short unemployment spells.

Keywords: Youth unemployment; scarring; state dependence; siblings

JEL-codes: J64

43 pages, November 10, 2004

Full text files

wp04-14.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Ali Ghooloo ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-03-18 13:49:13.