Arbeitspapier
Scars of recession: the long-term costs of the Finnish economic crisis
This study evaluates the long-term cost of unemployment in Finland by focusing on the deep recession period of the early 1990s. The number of plant closures increased sharply during the recession and the unemployment rate rose by more than 13 percentage points. In the analysis, prime working-age men who face unemployment due to plant closure are matched to those who remained employed during the recession. The average e ect of being unemployed during the recession is estimated for a 6 year follow-up period. After 6 years, there is a 25% annual earnings penalty for being unemployed. Months in employment recover steadily after the recession but are still 10% lower after 6 years. The estimated wage loss is 14%.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 2008:9
- Classification
-
Wirtschaft
Unemployment Insurance; Severance Pay; Plant Closings
Unemployment: Models, Duration, Incidence, and Job Search
- Subject
-
Unemployment
plant closings
Wirtschaftskrise
Konkurs
Arbeitslosigkeit
Langzeitarbeitslosigkeit
Verdienstausfall
Finnland
- Event
-
Geistige Schöpfung
- (who)
-
Verho, Jouko
- Event
-
Veröffentlichung
- (who)
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Institute for Labour Market Policy Evaluation (IFAU)
- (where)
-
Uppsala
- (when)
-
2008
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Verho, Jouko
- Institute for Labour Market Policy Evaluation (IFAU)
Time of origin
- 2008
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