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Title: The Long-Term Effects of Youth Unemployment
Resulting in 1 citation.
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Mroz, Thomas Savage, Timothy Howard |
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The Long-Term Effects of Youth Unemployment The Journal of Human Resources 41,2 (Spring 2006): 259-293. Also: http://www.jstor.org/stable/40057276 Cohort(s): NLSY79 Publisher: University of Wisconsin Press Keyword(s): Human Capital; Labor Market Outcomes; Unemployment; Youth Problems Using NLSY data, we examine the long-term effect of youth unemployment on later labor market outcomes. Involuntary unemployment may yield sub-optimal investments in human capital in the short run. A theoretical model of dynamic human capital investment predicts a rational "catch-up" response. Using semiparametric techniques to control for the endogeneity of prior behavior, our estimates provide strong evidence of this response. We also find evidence of persistence in unemployment. Combining our semiparametric estimates with a dynamic approximation to the lifecycle, we find that unemployment experienced as long ago as ten years continues to affect earnings adversely despite the catch-up response. |
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Bibliography Citation
Mroz, Thomas and Timothy Howard Savage. "The Long-Term Effects of Youth Unemployment." The Journal of Human Resources 41,2 (Spring 2006): 259-293.
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