Earning loss plot

The wounds that do not heal: Long-term effects of youth-unemployment

Economica Using UK data, the study reveals unemployment between ages 18-20 results in a 1.2% yearly permanent income drop. This “scar effect” lessens at ages 21-23 and vanishes thereafter. The impact is harshest for those at the lower end of the ability spectrum.

October 2021 · Gianni De Fraja, Sara Lemos, James C Rockey