Please use this identifier to cite or link to this item: http://hdl.handle.net/10625/48802
Title: Scarring effects of youth unemployment and informality : evidence from Argentina and Brazil
Authors: Viollaz, Mariana
Ham, Andrés
Cruces, Guillermo
Keywords: YOUTH
UNEMPLOYMENT
INFORMALITY
SCARRING
LATIN AMERICA
LABOUR LAW
LABOUR LEGISLATION
LABOUR MARKET
LABOUR POLICY
LABOUR PRODUCTIVITY
INFORMAL SECTOR
SOCIAL POLICY
SOCIAL LEGISLATION
SOCIAL SECURITY
SOCIAL EQUITY
YOUTH UNEMPLOYMENT
Date: 2012
Publisher: Center for Distributive, Labor and Social Studies (CEDLAS), Universidad Nacional de La Plata, AR
Abstract: This paper studies the effects of youth unemployment and informality on adult labor market outcomes in Argentina and Brazil. We propose an econometric strategy based on cross-cohort differences in youth labor market experiences in order to identify the effects of interest. The main findings indicate strong and significant scarring effects: cohorts exposed to higher levels of unemployment and informality in their youth fare systematically worse in the labor markets as adults. However, the persistence and wage penalty effects are mainly present in the early years of adulthood, and tend to dissipate with the passage of time. We also find that adverse effects are stronger for workers with lower skills. The main contribution of these results is to add a further dimension specific to developing and middle income countries – informality – to previous studies of unemployment scarring in advanced economies.
URI: http://hdl.handle.net/10625/48802
Project Number: 105653
Project Title: Labour Markets for Inclusive Growth in Latin America
Access: IDRC Only
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