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|dc.description.abstract||This paper looks at the effects of unemployment on re-employment wage for men using the firstseven waves of the British Household Panel Survey (BHPS) conducted over the period 1991-1997. In particular, how the effect of an interruption changes over time, and whether the type ofinterruption itself matters or not for re-employment wage, are addressed. The issue of sampleselection and unobserved heterogeneity are also addressed in the analyses. This study findsthat, unemployment does have a scarring effect on individuals who experience it, in terms ofearnings losses on re-employment jobs. In particular it finds that, an unemployed individual onreturning to work will earn about 6% less than an otherwise equivalent individual who makes anemployment to employment transition, during the first year of employment. This differential isestimated to increase to about 14% in the fourth year before starting to decline. In addition, thefirst spell of unemployment is estimated to have the largest effect with repeat incidences causinga further scarring. Separations due to redundancy are found to be less scarring relative to othercauses. The worst affected were men aged over 45 with no educational qualifications. The studycould not find any significant effects of unemployment duration on subsequent wages in additionto the incidence effect.||en_US|
|dc.publisher|||aInstitute for the Study of Labor (IZA) |cBonn||en_US|
|dc.relation.ispartofseries|||aIZA Discussion paper series |x189||en_US|
|dc.title||Is Unemployment Really Scarring? Effects of Unemployment Experiences on Wages||en_US|
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