The career effects of labour market conditions at entry

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This paper explores the effects of labour market conditions at graduation on an individual's work-life over the following decade. Australians graduating into a state and year with a 5 percentage point higher youth unemployment rate can expect to earn roughly 8 per cent less in their first year of work and 3.5 per cent less after five years, with the effect gradually fading to around zero ten years on. The magnitude of this effect varies according to the characteristics of the individual and the tertiary institution they attend. We then explore the mechanisms behind this scarring....  [+] Show more

Subjects: Labour market; Career development; Youth

Keywords: Graduates; Entry into working life; Job searching; Labour mobility; Economic factor; Wage; Career pattern; Employment outcomes; Longitudinal study

Geographic subjects: Australia; Oceania

Published: Canberra, Australian Capital Territory: Department of the Treasury, 2020

Physical description: 34 p.

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Series: Treasury working paper; no. 2020-21

Resource type: Working paper

Document number: TD/TNC 141.382

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