14/8/2014: Recessions and the Cost of Job Loss
Long-term unemployment has serious consequences in terms of Reducing life-time earnings, including post-unemployment spell earnings; Increasing life-time probability of future unemployment spells; and Carrying severe costs in terms of reduced health, quality of life, mental health and social wellbeing. This far we know. We also know that: Long-term unemployment effects start kicking in at around 3-6 months spell, rather than conventionally-measured 12 months spell Long-term unemployment is a problem most commonly associated with recessions; and Recessions-linked unemployment impacts those who have held the job prior to unemployment spell and those who are just starting their careers, with the latter suffering more significant effects of unemployment than the former. A recent (December 2011) study by Davis, Steven J. and von Wachter, Till, titled " Recessions and the Cost of Job Loss " (NBER Working Paper No. w17638: http://ssrn.com/abstract=1967372 ) looks are the evidence on...