The Effects of Unemployment on Subsequent Earnings: A Study of British Men 1984-94

Mary Gregory () and R. Jukes

Working Papers from Centre for Economic Performance & Institute of Economics

Abstract: This paper estimattes the impact of unemployment on subsequent earnings for a large and repesentative sample of British men, 1984094. Unemploymentincidence is found to have only a temporary effect, an average earnings setback of 10% on re-engagement largely eroding over two years. The effect of unemployment duration is permanent, a one-year spell adding a further 10 % penalty. These penalties are least for young men and the low paid- those most at risk of unemployment- and greatest for prime age and highly paid men. The effects have changed little over the ten years.

Keywords: UNEMPLOYMENT (search for similar items in EconPapers)
JEL-codes: E24 J16 (search for similar items in EconPapers)
Pages: 23 pages
Date: 1997
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:fth:cepies:21

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