Scars of youth non-employment and labour market conditions

Giulia Martina Tanzi ()
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Giulia Martina Tanzi: Bank of Italy

No 1312, Temi di discussione (Economic working papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: In this paper I analyse whether non-employment periods at the initial stages of an individual’s career may increase workers’ propensity to experience non-employment also in subsequent years. The study is based on data on young individuals in Italy. The paper uses an instrumental variables approach to separate the effect of early non-employment from any residual unobserved heterogeneity. The results provide strong evidence of negative effects induced by early non-employment, but the size of these effects depends on individual and regional labour market characteristics. The negative repercussions of early non-employment are smaller during economic downturns or in regions with high unemployment rates.

Keywords: non-employment; labor market conditions; instrumental variables (search for similar items in EconPapers)
JEL-codes: C26 C34 J64 (search for similar items in EconPapers)
Date: 2020-12
New Economics Papers: this item is included in nep-eur, nep-lab and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:wptemi:td_1312_20

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