The Scarring Effects of Unemployment, Low Pay and Skills Under-utilisation in Australia Compared

Kostas Mavromaras, Peter Sloane and Zhang Wei ()
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Zhang Wei: University of Adelaide

No 7440, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: 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.

Keywords: dynamic estimation; state dependence; education pathways; job quality (search for similar items in EconPapers)
JEL-codes: I21 J24 J31 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2013-06
New Economics Papers: this item is included in nep-cwa and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published - published in: Applied Economics, 2015, 47(23), 2413-2429

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Journal Article: The scarring effects of unemployment, low pay and skills under-utilization in Australia compared (2015)
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