Labor-Market Scars When Youth Unemployment is Extremely High: Evidence from Macedonia

Marjan Petreski (), Nikica Mojsoska-Blazevski () and Marcelo Bergolo

Eastern European Economics, 2017, vol. 55, issue 2, 168-196

Abstract: The objective of this article is to assess how the duration of unemployment spells for Macedonian youth affects their later employment (employment “scarring”) and wage outcomes (wage “scarring”). The discrete-time duration method is used to determine the unemployment spell and the standard employment and Mincer earnings functions. The School-to-Work Transition Survey 2012 is used. The results robustly suggest the presence of employment scarring: youth who remain unemployed over longer time periods have lower chances to find a job afterwards. However, the article provides no evidence for the existence of wage scarring in the Macedonian labor market.

Date: 2017
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Working Paper: Labor-Market Scars When Youth Unemployment Is Extremely High: Evidence from Macedonia (2016)
Working Paper: Labor-market scars when youth unemployment is extremely high: Evidence from Macedonia (2016)
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DOI: 10.1080/00128775.2016.1261631

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