Friday, 27 November 2020

Research Seminar: Youth unemployment and stigmatization across Europe: A comparative analysis











Abstract: This paper studies the dynamics of the scarring effect of youth unemployment along the business cycle in 12 European countries. On the one hand, we analyse differences associated to the negative effect of past unemployment experiences in future labour market status. And, on the other hand, we consider potential stigmatization against prospect young workers, that is, the extent to which employers are more reluctant to hire individuals with a history of unemployment. Our results are based on data from the EU-SILC for the period 2004 to 2015 and provide support in favour of a significant scarring effect of unemployment among youths that is highly heterogeneous across the countries under analysis and that increased substantially during the Great Recession. On the contrary, evidence on stigma effects was found to be rather weak.

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