Juni 2001

IZA DP No. 311: Unemployment, Education and Earnings Growth

I use the European Community Household Panel to ask whether unemployment affects the relationship between education and subsequent earnings growth. show that individuals with more education have more to lose in terms of subsequent earnings growth from the experience of unemployment. This result partially compensates the fact that more education reduces the incidence of unemployment: unemployment is less likely among the better educated, but its occurrence has more sizeable effects on subsequent earnings growth.