Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/55101
Authors: 
Cockx, Bart
Picchio, Matteo
Year of Publication: 
2011
Series/Report no.: 
Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5937
Abstract: 
This study investigates whether and to what extent further unemployment experience for youths who are already long-term unemployed imposes a penalty on subsequent labor market outcomes. We propose a flexible method for analyzing the effect on wages aside of transitions from unemployment and employment within a multivariate duration model that controls for selection on observables and unobservables. We find that prolonging unemployment drastically decreases the chances of finding employment, but hardly affects the quality of subsequent employment. The analysis suggests that negative duration dependence in the job finding rate is induced by negative signaling and not by human capital depreciation.
Subjects: 
scarring effect of unemployment duration
employment quality
wage in multivariate duration model
selectivity
JEL: 
C33
C41
J62
J64
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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