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Impact of unemployment on skill depreciation

Evidence from China's labor market

Bibliographic Data

ID9405875
AuthorsHui Feng (0000-0001-6275-1553, Xi'an Jiaotong University), Tianzhi Gao (0000-0001-8098-5978, China University of Mining and Technology, corresponding author)
Year2026
Volume263
Pages106165-106165
Publication date2026-01-17
Open AccessYes
TypeARTICLE
VenueActa Psychologica (JOURNAL)
Journal identifiersISSN: 0001-6918 • E-ISSN: 1873-6297
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.actpsy.2025.106165
PMID41548450
OpenAlexW7124540247
LanguageEN
References cited44

Clarifying the changes in skills during unemployment is crucial for improving the reemployment and long-term development prospects of unemployed individuals. Utilizing data from the China Family Panel Studies (CFPS), the China Labor Statistical Yearbook, and the China Statistical Yearbook, this study empirically investigates the impact of unemployment on the skill depreciation of Chinese workers. The findings indicate that unemployment results in a 3.6 % overall decline in skills, encompassing a dual depreciation of both cognitive and non-cognitive skills. Mechanism analysis reveals that the reduction in skill training opportunities and the deterioration of health are primary drivers of this depreciation, with rural residents and urban migrant workers experiencing more severe skill depreciation due to disparities in infrastructure and public services. Importantly, the study identifies that promoting job creation serves as an effective measure to mitigate skill depreciation during unemployment. Based on these findings, the study proposes expanding high-quality reemployment training programs through measures such as subsidizing skill development, prioritizing vulnerable groups, and fostering job creation during unemployment to mitigate skill depreciation

China · Depreciation (economics · Panel data · Subsidy · Unemployment · Youth unemployment · China's Socioeconomic Reforms and Governance · Labor market dynamics and wage inequality · Unemployment and Economic Growth

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