Do Business Cycle Conditions at the Time of Labour Market Entry Affect Future Employment Prospects?
Raaum, Oddbjørn and Knut Røed
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.
Unemployment, Non-employment, Scarring
Project:Oppdragsgiver: Norges forskningsråd
Frisch prosjekt: 1131 - Social background, early unemployment experiences and marginalisation