Scarring effects of youth unemployment and informality : evidence from Argentina and Brazil
Center for Distributive, Labor and Social Studies (CEDLAS), Universidad Nacional de La Plata, AR
This study looks at the role of early career labor market experiences on adult outcomes by analyzing how unemployment and informality during youth are related to adult unemployment, informality and wages in Argentina and Brazil. Findings show that youth unemployment and informality do affect adult labor market outcomes. However, state dependence and wage penalty effects are mainly present in the early years of adulthood and tend to disappear with the passage of time. These results are also different for adult individuals of different skill levels. Those with lower skills experience higher wage losses and larger persistence effects.
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LATIN AMERICA, LABOUR LAW, LABOUR LEGISLATION, LABOUR MARKET, INFORMAL SECTOR, SOCIAL POLICY, SOCIAL LEGISLATION, SOCIAL SECURITY, YOUTH UNEMPLOYMENT, INCLUSION, ECONOMETRICS, ARGENTINA, BRAZIL, SOUTH AMERICA