Do Business Cycle Conditions at the Time of Labour Market Entry Affect Future Employment Prospects?

Authors:

Raaum, Oddbjørn and Knut Røed

Year:

2006

Reference:

88(2) May, 193-210

Summary

Labour market conditions at the time and place of potential entry into the labour market are shown to have a substantial and persistent impact on adult employment prospects. In-dividuals who face particularly depressed local labour markets when they graduate from secondary education, are – other things equal - subject to relatively high rates of non-employment during their whole prime-age work career. Building on a unique combination of micro- and macro data from Norway, we show that these effects are robust with respect to model specification and conditioning variables, and that they are not limited to indi-viduals with a particularly disadvantaged background.

JEL:

J64

Keywords:

Unemployment, Non-employment, Scarring

Project:

Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.:
Frisch prosjekt: 1131 - Social background, early unemployment experiences and marginalisation

Contact:

knut.roed@frisch.uio.no

Financing:

Norges Forskningsråd