Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/330656 
Year of Publication: 
2025
Citation: 
[Journal:] Empirical Economics [ISSN:] 1435-8921 [Volume:] 69 [Issue:] 1 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2025 [Pages:] 549-579
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
We estimate the effect of nonemployment experienced by Italian youth after secondary school exit on subsequent labor market outcomes. We focus on the impact on earnings and labor market participation both in the short term and in the long term. By estimating a factor-analytic model that controls for time-varying unobserved heterogeneity, we find that the negative effect of nonemployment on earnings is persistent, being sizeable and statistically significant up to 25 years after school completion. Penalties in terms of participation last instead shorter. Hence, early nonemployment operates by persistently locking the youth who get off to a bad start into low-wage jobs.
Subjects: 
Youth nonemployment
Scarring effects
Earnings
Labor market participation
Factor analytic model
JEL: 
J01
J08
J31
J64
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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