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The Consequences of Long-Term Unemployment

Evidence from Linked Survey and Administrative Data

Bibliographic Data

ID3524312
AuthorsKatharine G Abraham (0000-0002-1975-8714, corresponding author), John Haltiwanger (0000-0001-6164-6938), Kristin Sandusky, James R Spletzer (Katharine G. Abraham is Professor of Economics and Survey Methodology at the University of Maryland. John Haltiwanger is the Dudley and Louisa Dillard Professor of Economics at the University of Maryland. Kristin Sandusky is a Researcher at the Center for Economic Studies (CES), U.S. Census Bureau. James R. Spletzer is a Researcher at CES, U.S. Census Bureau)
Year2019
Volume72
Issue2
Pages266-299
Publication date2019-03-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueIndustrial and Labor Relations Review (JOURNAL)
Journal identifiersISSN: 0019-7939 • E-ISSN: 2162-271X
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1177/0019793918797624
OpenAlexW2794108795
LanguageEN
Citations received5
References cited26

That the long-term unemployed fare worse in the labor market than do the short-term unemployed is well-known, but why? One potential explanation is that the long-term unemployed are "bad apples" who had poorer prospects from the outset of their spells (heterogeneity). Another is that these bad outcomes are a consequence of their extended unemployment (state dependence). The authors use Current Population Survey data on unemployed individuals linked to unemployment insurance wage records for the same people to distinguish between these explanations. The rich work history information contained in the wage records allows the authors to control for individual heterogeneity that could affect post-unemployment labor market outcomes. Even with these controls in place, they find that unemployment duration has a strongly negative effect on the likelihood of subsequent employment. The results are robust to accounting for differences in the labor market conditions experienced by the long-term and short-term unemployed

Affect (linguistics) · Current Population Survey · Demographic economics · Duration (music) · Economics · Labour economics · Macroeconomics · Population · Survey data collection · Term (time) · Unemployment · Wage · Work (physics) · Demography · Employment and Welfare Studies · Italy: Economic History and Contemporary Issues · Labor market dynamics and wage inequality · Psychology

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Unique citing works5
Citations per year1
Citation span2021 - 2025 (5)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 5

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