Unemployment scarring by gender: Human capital depreciation or stigmatization? Longitudinal evidence from the Netherlands, 1980–2000 |
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Institution: | 1. University of Potsdam, Germany;2. IZA Bonn, Germany;3. DIW Berlin, Germany;4. IAB Nuremberg, Germany;5. Maastricht University, The Netherlands;6. CNRS, CREST, France;1. Luxembourg Institute of Socio-Economic Research (LISER), Esch-sur-Alzette, Luxembourg;2. National Institute for the Analysis of Public Policies (INAPP);3. Department of Economics, Ghent University, Ghent, Belgium;4. IZA - Institute of Labor Economics, Bonn, Germany;5. GLO - Global Labor Organization Essen, Germany;6. University of Modena and Reggio Emilia, Modena, Italy |
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Abstract: | Using longitudinal data from the Dutch Labor Force Supply Panel (OSA), this article examines how unemployment scarring (i.e., wage setbacks following unemployment) and its underlying mechanisms operate across gender in the Netherlands over the period 1985–2000. A series of fixed effect panel models that correct for unobserved heterogeneity, reveal a notable disparity in unemployment scarring by gender. Interestingly, while unemployment scarring is short-lived and partly conditional upon human capital differences among women, it is strongly persistent among men and contingent upon old age, ethnicity, and tight economic conditions. Our findings provide new evidence regarding unemployment scarring by gender while they support the hypothesis that among women the effects of unemployment scarring are predominantly driven by human capital depreciation, while among men stigma effects dominate. |
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Keywords: | Unemployment scarring Gender Stigma Human capital depreciation Wage inequality |
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