Off to a bad start: youth nonemployment and labor market outcomes later in life. A new GLO Discussion Paper by Mattio Filomena, GLO Fellow Matteo Picchio & GLO Affiliate Isabella Giorgetti.

Discussion Paper, News, Post, Post-22

A new GLO Discussion Paper finds that the negative effect of nonemployment on earnings is especially persistent, being sizeable and statistically significant up to 25 years after school completion, for both men and women.

GLO Discussion Paper No. 1116, 2022

Off to a bad start: youth nonemployment and labor market outcomes later in life – Download PDF
by Filomena, Mattia & Giorgetti, Isabella & Picchio, Matteo

GLO Fellow Matteo Picchio & GLO Affiliate Isabella Giorgetti

Matteo Picchio

Author Abstract: We estimate the effect of nonemployment experienced by Italian youth after leaving secondary school on subsequent labor market outcomes. We focus on the impact on earnings and labor market participation both in the short- and in the long-term, up to 25 years since school completion. By estimating a factor analytic model which controls for time-varying unobserved heterogeneity, we find that the negative effect of nonemployment on earnings is especially persistent, being sizeable and statistically significant up to 25 years after school completion, for both men and women. Penalties in terms of participation last instead shorter; they disappear by the 10th year after school completion. Hence, early nonemployment operates by persistently locking the youth who get off to a bad start into low-wage jobs.

JUST PUBLISHED
Vol. 35, Issue 3, July 2022: Journal of Population Economics (JOPE): 15 articles
https://link.springer.com/journal/148/volumes-and-issues/35-3
Just released: CiteScore of JOPE moves up from 3.9 (2020) to 6.5 (2021)! LINK
Similar, its Impact Factor is now 4.7 (2021) after 2.8 (2020)! LINK

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