No Youth Left Behind? The Long‐Term Impact of Displacement on Young Workers

23 Pages Posted: 13 Jul 2013

See all articles by Inés Hardoy

Inés Hardoy

Institute for Social Research, Norway

Pål Schøne

Institute for Social Research, Norway

Date Written: August 2013

Abstract

We investigate short‐ and long‐term impacts on labour market outcomes of experiencing a displacement for young workers. The period under study is 2000–2009. The end of the observation period is characterised by a shrinking labour market, coinciding with the start of the financial crisis. The main merit of the study is the inclusion of a wide battery of dependent variables. In general we find sizeable short‐term effect on both unemployment and wage‐employment. Furthermore, the results indicate that displacement has a long‐term negative effect on wage employment. Part of this pattern seems to be masked by an increased likelihood of self‐employment. A positive effect on self‐employment is desirable from a policy perspective. Finally, among those who are employed in the final observation year, we find a small negative effect of displacement on hourly wages. This is solely explained by the foregone work experience of the displaced workers in the years after displacement.

Suggested Citation

Hardoy, Inés and Schøne, Pål, No Youth Left Behind? The Long‐Term Impact of Displacement on Young Workers (August 2013). Kyklos, Vol. 66, Issue 3, pp. 342-364, 2013, Available at SSRN: https://ssrn.com/abstract=2293276 or http://dx.doi.org/10.1111/kykl.12025

Inés Hardoy (Contact Author)

Institute for Social Research, Norway ( email )

Munthesgate 31
0260 Oslo
Norway

Pål Schøne

Institute for Social Research, Norway ( email )

Munthesgate 31
0260 Oslo
Norway

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