Scandinavian Working Papers in Economics

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

No 2009:10: Unemployment and subsequent earnings for Swedish college graduates: a study of scarring effects

Marie Gartell ()
Additional contact information
Marie Gartell: Institute for Futures Studies, Postal: Box 591, S-101 31 Stockholm, Sweden

Abstract: Unemployment immediately upon graduation is associated with substantial and permanent future earnings losses. Even for very short unemployment spells the estimated earnings losses 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. This lends some support for the interpretation that unemployment upon graduation has the causal effect of reducing future earnings prospects.

Keywords: Scarring; State dependence; Higher education; College-to-work

JEL-codes: J24; J31; J64

34 pages, April 23, 2009

Full text files

wp09-10.pdf PDF-file 

Download statistics

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

This page generated on 2018-01-23 23:33:34.