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
34 pages, April 23, 2009
Full text files
wp09-10.pdf
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