TY - RPRT AU - Mavromaras, Kostas AU - Sloane, Peter J. AU - Wei, Zhang TI - The Scarring Effects of Unemployment, Low Pay and Skills Under-utilisation in Australia Compared PY - 2013/Jun/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 7440 UR - https://www.iza.org/index.php/publications/dp7440 AB - There is a substantial literature on the scarring effects of unemployment on future employment prospects and a smaller one on the scarring effects of low pay, but the possibility that skills mismatch in the form of skills under-utilisation, may also have similar detrimental effects, has not previously been considered. This paper uses the first ten waves of the HILDA survey data to investigate the inter-related dynamics of unemployment, low pay and skills under-utilisation in Australia, focussing on differences by gender and educational pathways. It shows that skills under-utilisation also exhibits scarring effects, in addition to earlier evidence on wage penalties and reduced job satisfaction. KW - dynamic estimation KW - state dependence KW - education pathways KW - job quality ER -