Labor-Market Scars When Youth Unemployment Is Extremely High: Evidence from Macedonia
The objective of this study is to assess how the duration of the
unemployment spell of Macedonia youth affects later employment (the employment 'scarring'
effect) and wage outcomes (the wage 'scarring' effect). To that end, firstly it is devise a model in
which the unemployment spell is determined by individual and household characteristics and
work attitudes and preferences. Results robustly suggest a presence of employment scar as those
young persons who stay unemployed over a longer period of time were found to have lower
chances to find a job afterwards. On the other hand, the study does not provide evidence for the
existence of the wage scar.
Institute for the Study of Labor (IZA)
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Country(ies) relevant for your entry:
- Marjan Petreski
- Nikica Mojsoska-Blazevski
- Marcelo Bergolo