Unemployment and subsequent earnings for Swedish college graduates: a study of scarring effects

Marie Gartell (marie.gartell@framtidsstudier.se)
Additional contact information
Marie Gartell: Institute for Futures Studies, Postal: Box 591, S-101 31 Stockholm, Sweden

No 2009:10, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

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 (search for similar items in EconPapers)
JEL-codes: J24 J31 J64 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2009-04-23
New Economics Papers: this item is included in nep-edu and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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