publication . Preprint . 2000

The Effects of Unemployment on the Earnings of Young Australians

Matthew Gray;
Open Access
  • Published: 01 Sep 2000
The high rates of youth unemployment experienced in a number of OECD economies has raised concerns about the effect of this on subsequent earnings. Using the Australian Youth Survey (AYS) a longitudinal survey of Australian youth, we estimate the effects of unemployment on subsequent hourly and weekly earnings. The estimates suggest that, when unobserved heterogeneity is taken into account, it is only long histories of unemployment which have a negative effect on hourly wages. On the other hand, even relatively small amounts of unemployment history are associated with weekly earnings losses. The effects of unemployment on weekly earnings is shown to be mostly du...
Medical Subject Headings: health care economics and organizations
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