Skip to main content
×
×
Home

Scars that will not Disappear: Long-term Associations between Early and Later life Unemployment under Different Welfare Regimes

  • MARTINA BRANDT (a1) and KARSTEN HANK (a2)
Abstract

Exploiting retrospective data from the SHARELIFE project, we investigate long-term associations between early and later life unemployment spells of at least six months in a sample of more than 13,000 men and women from eleven European countries. Our findings provide, first, evidence for significant differences in the life-course pattern of unemployment occurrence between welfare state regimes. Second, childhood conditions are shown to bear significant associations with the odds of experiencing periods of unemployment throughout one's employment career. Third, and finally, our analysis confirms previous research in that we provide clear evidence for long-term scarring effects, showing that they are indeed permanent ones, as we observe them even among older workers close to retirement. The paper concludes with a discussion of perspectives for future research.

Copyright
References
Hide All
Anyadike-Danes, M. and McVicar, D. (2005), ‘You’ll never walk alone: childhood influences and male career path clusters’, Labour Economics, 12: 511–30.
Arrow, J. O. (1996), ‘Estimating the influence of health as a risk factor on unemployment: a survival analysis of employment durations for workers surveyed in the German Socio-Economic Panel (1984–1990)’, Social Science and Medicine, 42: 1651–9.
Arulampalam, W., Gregg, P. and Gregory, M. (2001), ‘Unemployment scarring’, The Economic Journal, 111, F577584.
Belzil, C. (2001), ‘Unemployment insurance and subsequent job duration: job matching versus unobserved heterogeneity’, Journal of Applied Econometrics, 16: 619–36.
Blanchet, D., Brugiavini, A. and Rainato, R. (2005), ‘Pathways to retirement’, in Börsch-Supan, A.et al., (eds.), Health, Ageing and Retirement in Europe: First Results from SHARE, Mannheim: MEA, pp. 246–52.
Blom, A. G. and Schröder, M. (2011), ‘Sample composition 4 years on: retention in SHARE Wave 3’, in Schröder, M. (ed.), Retrospective Data Collection in the Survey of Health, Ageing and Retirement in Europe: SHARELIFE Methodology, Mannheim: MEA, pp. 5561.
Blossfeld, H.-P., Buchholz, S. and Hofäcker, D. (eds.) (2006), Globalization, Uncertainty and Late Careers in Society, London: Routledge.
Böheim, R. and Taylor, M. P. (2002), ‘The search for success: do the unemployed find stable employment?’, Labour Economics, 9: 717–35.
Bonoli, G. (2011), ‘Active labour market policy in a changing economic context’, in Clasen, J. and Clegg, D. (eds.), Regulating the Risk of Unemployment: National Adaptations to Post-Industrial Labour Market in Europe, Oxford: Oxford University Press, pp. 389409.
Börsch-Supan, A., Brandt, M., Hunkler, C., Kneip, T., Korbmacher, J., Malter, F., Schaan, B., Stuck, S. and Zuber, S. (2013), ‘Data resource profile: the Survey of Health, Ageing and Retirement in Europe (SHARE)’, International Journal of Epidemiology: DOI: 10.1093/ije/dyt088.
Börsch-Supan, A., Hank, K., Jürges, H. and Schröder, M. (2010), ‘Longitudinal data collection in Continental Europe: experiences from the Survey of Health, Ageing and Retirement in Europe’, in Harkness, J. A.et al. (eds.), Survey Methods in Multinational, Multiregional, and Multicultural Contexts, Hoboken, NJ: Wiley, pp. 507–14.
Botero, J. C., Djankov, S., La Porta, R., Lopez-de-Silanes, F. and Shleifer, A. (2004), ‘The regulation of labor’, Quarterly Journal of Economics, 119: 1339–82.
Brandt, M., Deindl, C. and Hank, K. (2012), ‘Tracing the origins of successful aging: the role of childhood conditions and social inequality in explaining later life health’, Social Science and Medicine, 74: 1418–25.
Breen, R. (2005), ‘Explaining cross-national variation in youth unemployment: market and institutional factors’, European Sociological Review, 21: 125–34.
Brugiavini, A., Croda, E. and Mariuzzo, F. (2005), ‘Labour force participation of the elderly: unused capacity?’, in Börsch-Supan, A.et al. (eds.), Health, Ageing and Retirement in Europe – First Results from the Survey of Health, Ageing and Retirement in Europe, Mannheim: MEA, pp. 236–40.
Brugiavini, A., Pasini, G., and Trevisan, E. (2011), ‘Maternity and labour market outcome: short and long term effects’, in Börsch-Supan, A.et al. (eds.), The Individual and the Welfare State, Berlin/Heidelberg: Springer, pp. 151–60.
Bruno, R. L. and Rovelli, R. (2010), ‘Labour market policies and outcomes in the enlarged EU’, Journal of Common Market Studies, 48: 661–85.
Buchholz, S., Hofäcker, D., Mills, M., Blossfeld, H.-P., Kurz, K. and Hofmeister, H. (2009), ‘Life courses in the globalization process: the development of social inequalities in modern societies’, European Sociological Review, 25: 5371.
Caspi, A., Entner Wright, B. R., Moffit, T. E. and Silva, P. A. (1998), ‘Early failure in the labor market: childhood and adolescent predictors of unemployment in the transition to adulthood’, American Sociological Review, 63: 424–51.
Covizzi, I. (2008), ‘Does union dissolution lead to unemployment? A longitudinal study of health and risk of unemployment for women and men undergoing separation’, European Sociological Review, 24: 347–61.
Currie, J. (2009), ‘Healthy, wealthy, and wise: socioeconomic status, poor health in childhood, and human capital development’, Journal of Economic Literature, 47: 87122.
De Vreyer, P., Layte, R., Wolbers, M. and Hussain, M. A. (2000), ‘The permanent effects of labour market entry in times of high unemployment’, in Gallie, D. and Paugam, S. (eds.), Welfare Regimes and the Experience of Unemployment in Europe, Oxford: Oxford University Press, pp. 134–52.
Dieckhoff, M. (2011), ‘The effect of unemployment on subsequent job quality in Europe: a comparative study of four countries’, Acta Scociologica, 54: 233–49.
DiPrete, T. A. and Eirich, G. M. (2006), ‘Cumulative advantage as a mechanism for inequality: a review of theoretical and empirical developments’, Annual Review of Sociology, 32: 271–97.
Doiron, D. and Gørgens, T. (2008), ‘State dependence in youth labor market experiences, and the evaluation of policy interventions’, Journal of Econometrics, 145: 8197.
Ebbinghaus, B. (2006), Reforming Early Retirement in Europe, Japan and the USA, Oxford: Oxford University Press.
Eliason, M. and Storrie, D. (2006), ‘Lasting or latent scars? Swedish evidence on the long-term effects of job displacement’, Journal of Labor Economics, 24: 831–56.
Elman, C. and O'Rand, A. (2004), ‘The race is to the swift: socioeconomic origins, adult education, and wage attainment’, American Journal of Sociology, 110: 123–60.
Elvander, N. (2002), ‘The labour market regimes in the Nordic countries: a comparative perspective’, Scandinavian Political Studies, 25: 117–37.
Emmenegger, P. (2011), ‘Job security regulations in Western democracies: a fuzzy set analysis’, European Journal of Political Research, 50: 336–64.
Gallie, D., Jacobs, S. and Paugam, S. (2000), ‘Poverty and financial hardship among the unemployed’, in Gallie, D. and Paugam, S. (eds.), Welfare Regimes and the Experience of Unemployment in Europe, Oxford: Oxford University Press, pp. 4768.
Gallie, D. and Paugam, S. (eds.) (2000), Welfare Regimes and the Experience of Unemployment in Europe, Oxford: Oxford University Press.
Gangl, M. (2004), ‘Welfare states and the scar effects of unemployment: a comparative analysis of the United States and West Germany’, American Journal of Sociology, 109: 1319–64.
Gangl, M. (2006), ‘Scar effects of unemployment: an assessment of institutional complementarities’, American Sociological Review, 71: 9861013.
Gibbons, R. and Katz, L. F. (1991), ‘Layoffs and lemons’, Journal of Labor Economics, 9: 351–80.
Gregg, P. (2001), ‘The impact of youth unemployment on adult unemployment in the NCDS’, The Economic Journal, 111: F626–F653.
Haas, S. A. (2007), ‘The long-term effects of poor childhood health: an assessment and application of retrospective reports’, Demography, 44: 113–35.
Haas, S. A., Glymour, M. M. and Berkman, L. F. (2011), ‘Childhood health and labor market inequality over the life course’, Journal of Health and Social Behavior, 52: 298313.
Hansen, H. T. (2005), ‘Unemployment and marital disruption: a panel data study of Norway’, European Sociological Review, 21: 135–48.
Henkens, K., Sprengers, M. and Tazelaar, F. (1996), ‘Unemployment and the older worker in the Netherlands: re-entry into the labour force or resignation’, Ageing and Society, 16: 561–78.
Jacob, M. and Kleinert, C. (2008), ‘Does unemployment help or hinder becoming independent? The role of employment status for leaving the parental home’, European Sociological Review, 24: 141–53.
Jürges, H. (2007), ‘Unemployment, life satisfaction and retrospective error’, Journal of the Royal Statistical Society A, 170: 4361.
Kahn, L. B. (2010), ‘The long-term labor market consequences of graduating from college in a bad economy’, Labour Economics, 17: 303–16.
Knuth, M. and Kalina, T. (2002), ‘Early exit from the labour force between exclusion and privilege: unemployment as a transition from employment to retirement in West Germany’, European Societies, 4: 393418.
Kreyenfeld, M. (2010), ‘Uncertainties in female employment careers and the postponement of parenthood in Germany’, European Sociological Review, 26: 351–66.
Luijkx, R. and Wolbers, M. H. J. (2009), ‘The effects of non-employment in early work–life on subsequent employment chances of individuals in the Netherlands’, European Sociological Review, 25: 647–60.
Lupi, C. and Ordine, P. (2002), ‘Unemployment scarring in high unemployment regions’, Economics Bulletin, 10: 18.
Manzoni, A., Luijkx, R. and Muffels, R. (2011), ‘Explaining differences in labour market transitions between panel and life-course data in West-Germany’, Quality and Quantity, 45: 241–61.
Nickell, S., Nunziata, L. and Ochel, W. (2005), ‘Unemployment in the OECD since the 1960s: what do we know?’, The Economic Journal, 115: 127.
Raaum, O. and Røed, K. (2006), ‘Do business cycle conditions at the time of labor market entry affect future employment prospects?’, Review of Economics and Statistics, 88: 193210.
Sackmann, R. (2001), ‘Age and labour-market chances in international comparison’, European Sociological Review, 17: 373–87.
Scherer, S. (2005), ‘Patterns of labour market entry – long wait or career instability? An empirical comparison of Italy, Great Britain and West Germany’, European Sociological Review, 21: 427–40.
Schröder, M. (ed.) (2011), Retrospective Data Collection in the Survey of Health, Ageing and Retirement in Europe: SHARELIFE Methodology, Mannheim: MEA.
Schröder, M. (2013), ‘Jobless now, sick later? Investigating the long-term consequences of involuntary job loss on health’, Advances in Life Course Research, 18: 515.
Stevens, A. H. (1997), ‘Persistent effects of job displacement: the importance of multiple job losses’, Journal of Labor Economics, 15: 165–88.
Strandh, M. and Nordlund, M. (2008), ‘Active labour market policy and unemployment scarring: a ten-year Swedish panel study’, Journal of Social Policy, 37: 357–82.
Szinovaczs, M. E. (2011), ‘Introduction: the aging workforce: challenges for societies, employers, and older workers’, Journal of Aging and Social Policy, 23: 95100.
Tatsiramos, K. (2009), ‘Unemployment insurance in Europe: unemployment duration and subsequent employment stability’, Journal of the European Economic Association, 7: 1225–60.
Van Berkel, R. and Hornemann Møller, I. (2004), ‘The experience of activation policies’, in Gallie, D. (ed.), Resisting Marginalisation – Unemployment Experience and Social Policy in the European Union, Oxford: Oxford University Press, pp. 223–43.
Wise, D. A. (2010), ‘Facilitating longer working lives: international evidence on why and how’, Demography, 47 (Supplement), S131–S149.
Wolbers, M. H. J. (2007), ‘Patterns of labour market entry: a comparative perspective on school-to-work transitions in 11 European countries’, Acta Sociologica, 50: 189210.
Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

Journal of Social Policy
  • ISSN: 0047-2794
  • EISSN: 1469-7823
  • URL: /core/journals/journal-of-social-policy
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Metrics

Altmetric attention score

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed