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Title
The impact of previous unemployment periods on gender wage differentials: a cross-country comparison using ECHP
Language
English
URL
http://iserwww.essex.ac.uk/epunet-2003/docs/pdf/papers/brookes.pdf
Abstract
The aim of this study is to estimate the impact past unemployment spells have on three different factors. Firstly current wage levels, secondly the likelihood of returning to employment and finally the contractual terms under which people return to work. In each case it is established whether these effects differ across gender. Using the first 3 Waves of the ECHP data series, wage regressions are estimated for German, Danish and UK male and female workers, as well as limited dependent variable models on the probability of being employed and of being employed on a permanent contract respectively. Longterm unemployment spells (12 months or more without a job) and shorter unemployment spells of less than a year are controlled for in each of the models. It is found that previous periods of unemployment have a significant negative impact upon the likelihood of finding a job in the future. The paper also reveals that unemployment has a negative impact on earnings and on the likelihood of being employed on a permanent contract. With regard gender specific analysis it is found that women encounter a disadvantage in the more centralised German and Danish labour markets than in the more flexible labour market of the UK.
Reference
Brookes, Michael, Hinks, Timothy, Watson, Duncan (2003 July) 'The impact of previous unemployment periods on gender wage differentials: a cross-country comparison using ECHP', EPUNet-2003 Conference, 3-5 July 2003, Colchester, UK
Authors
Michael Brookes, Timothy Hinks, Duncan Watson
Countries included
Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, United Kingdom
ECHP Waves
1994, 1995, 1996
Institutions Involved
Middlesex University, London, NIEP-National Institute for Economic Policy, Johannesburg, South Africa, Uni. of Swansea, UK
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