CESifo Working Papers: "Looking Back in Anger? Retirement and Unemployment Scarring"
New discussion paper by Andreas Knabe, Clemens Hetschko and Ronnie Schöb:
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In a new discussion paper, Andreas Knabe (together with Clemens Hetschko and Ronnie Schöb, Freie Universität Berlin) examines whether unemployment leads to long-lasting losses in life satisfaction even after becoming reemployed that are not related to income losses (scarring effects). By examining the transition of unemployed persons to retirement, it is possible to separate the scars caused by future labor market uncertainty from genuine scars purely related to past experiences. The study finds evidence for such genuine unemployment scars for people who were unemployed for the first time in their life directly prior to retirement, but not for people with earlier unemployment experiences.
The discussion paper can be found here. |
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