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Scar effects of unemployment: a cross-national comparison

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Abstract:

The paper uses panel data from the Survey of Income and Program Participation (SIPP) and the European Community Household Panel (ECHP) to conduct a comparative analysis of the impact of unemployment spells on workers subsequent careers in the United States and twelve Western European countries. Using difference-in-difference (DID) propensity score matching, we empirically estimate the causal effect of unemployment on subsequent careers in terms of workers employment prospects as well as post-unemployment earnings, and also assess whether the established scar effects are temporary or persistent over time. The cross-national comparison reveals that scarring is more severe in countries undergoing recessions, whereas successful institutional mediation of unemployment scarring occurs through either generous unemployment benefits or strict labor market regulation, but not both.

Most Common Document Word Stems:

unemploy (255), worker (150), scar (110), employ (103), earn (78), countri (70), labor (70), effect (66), market (62), econom (57), data (53), evid (53), differ (49), estim (49), 1 (48), loss (45), european (44), incid (42), institut (41), job (36), protect (32),

Author's Keywords:

unemployment scarring, displaced workers, cumulative disadvantage, propensity score matching, difference-in-differences, cross-national comparison, welfare regimes
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Name: American Sociological Association
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http://www.asanet.org


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URL: http://www.allacademic.com/meta/p19600_index.html
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MLA Citation:

Gangl, Markus. "Scar effects of unemployment: a cross-national comparison" Paper presented at the annual meeting of the American Sociological Association, Marriott Hotel, Loews Philadelphia Hotel, Philadelphia, PA, Aug 12, 2005 <Not Available>. 2009-05-25 <http://www.allacademic.com/meta/p19600_index.html>

APA Citation:

Gangl, M. , 2005-08-12 "Scar effects of unemployment: a cross-national comparison" Paper presented at the annual meeting of the American Sociological Association, Marriott Hotel, Loews Philadelphia Hotel, Philadelphia, PA Online <APPLICATION/PDF>. 2009-05-25 from http://www.allacademic.com/meta/p19600_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: The paper uses panel data from the Survey of Income and Program Participation (SIPP) and the European Community Household Panel (ECHP) to conduct a comparative analysis of the impact of unemployment spells on workers subsequent careers in the United States and twelve Western European countries. Using difference-in-difference (DID) propensity score matching, we empirically estimate the causal effect of unemployment on subsequent careers in terms of workers employment prospects as well as post-unemployment earnings, and also assess whether the established scar effects are temporary or persistent over time. The cross-national comparison reveals that scarring is more severe in countries undergoing recessions, whereas successful institutional mediation of unemployment scarring occurs through either generous unemployment benefits or strict labor market regulation, but not both.

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Document Type: application/pdf
Page count: 40
Word count: 11142
Text sample:
Scar effects of unemployment: a cross-national comparison Markus Gangl University of Mannheim P.O. Box 10 34 62 68131 Mannheim Germany Phone +49.621.181.2049 Fax +49.621.181.2048 Email mgangl@sowi.uni-mannheim.de 25 November 2004 FIRST DRAFT COMMENTS WELCOME Word Count: 8 450 words 4 tables 3 figures 1 appendix table Acknowledgments The paper is part of the European Science Foundation ECRP project “Human Capital Effects of the Welfare State”. The author gratefully acknowledges support by the German Science Foundation (Deutsche Forschungsgemeinschaft contract GA 758/2-1).
change 0.102 0.140 0.135 0.048 0.060 0.104 0.123 0.148 0.015 0.053 0.071 0.136 0.090 since T-1 Occupation chg. 0.141 0.205 0.177 0.052 0.096 0.133 0.193 0.231 0.027 0.079 0.095 0.207 0.164 since T-1 N 57995 15412 8836 8000 6572 20371 8851 6810 18637 9659 18998 16045 15680 Notes: Workers aged 25-54 standard errors of metric variables in parentheses. Distributions for industry and occupations omitted; tenure data censored at 20 years. Proportion nonwhite in the U.S. sample: 19.7% (unemployed) 15.0%


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