References (32)



Scarring Effects of the First Labor Market Experience

Oskar Nordstrom Skans

IFAU - Office of Labour Market Policy Evaluation; Institute for the Study of Labor (IZA)

March 1, 2011

IZA Discussion Paper No. 5565

The paper studies the relationship between teenagers' first labor market experience and subsequent labor market performance using data on all Swedish youths graduating from vocational high schools in the recession years of 1991-94. Sibling fixed-effects combined with detailed data on high school programs, grades and work experience during high school are used in order to identify the causal long-run effects of post-graduation unemployment. The results show significant scarring effects resulting in higher risks of unemployment up to 5 years later. The results imply that poor labor market performance as a teenager result in persistent, but not permanent, negative effects.

Number of Pages in PDF File: 40

Keywords: youth unemployment, scarring, state dependence, siblings

JEL Classification: J64

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Date posted: March 21, 2011  

Suggested Citation

Nordstrom Skans, Oskar, Scarring Effects of the First Labor Market Experience (March 1, 2011). IZA Discussion Paper No. 5565. Available at SSRN: http://ssrn.com/abstract=1790676

Contact Information

Oskar Nordstrom Skans (Contact Author)
IFAU - Office of Labour Market Policy Evaluation ( email )
Box 513
751 20 Uppsala
+46 18 471 70 79 (Phone)
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072

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References:  32

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