Scars of Youth Non-employment and Labour Market Conditions

Giulia Martina Tanzi ()
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Giulia Martina Tanzi: Bank of Italy, Milano Branch, Economic Research Unit

Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, 2023, vol. 9, issue 2, No 3, 475-499

Abstract: Abstract In this paper I analyse whether non-employment periods at the initial stage of the work career may increase the propensity to experience non-employment in subsequent years too, using data on young individuals in Italy. The role of labour market conditions in moderating these scarring effects is investigated, exploiting the regional differences across the country. The results provide evidence of negative effects induced by early non-employment. Moreover, the negative repercussions of early non-employment are smaller (higher) in regions with higher (lower) unemployment rates. This evidence can be interpreted using the signaling theory.

Keywords: Scarring effects; Non-employment; Labour market conditions (search for similar items in EconPapers)
JEL-codes: C26 J64 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s40797-022-00191-6

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