The effect of unemployment on subsequent job quality in Europe: A comparative study of four countries

Abstract

This article examines the effect of past unemployment on labour market outcomes. While previous work on unemployment scarring has predominantly focused on re-employment wages as well as subsequent employment rates, this study examines how past unemployment affects non-pecuniary job attributes of re-employed workers. Using the European Community Household Panel, it undertakes a comparative analysis of the consequences of past unemployment in four European countries with very different institutional contexts: Austria, Denmark, Spain and the UK. The results present clear evidence of job quality scars and point to notable cross-country differences in the extent and pattern of scarring.

Keywords

cross-national comparison difference-in-differences propensity score matching job quality job satisfaction labour market and welfare state institutions unemployment

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