Abstract

BECCARIA, Luis; MAURIZIO, Roxana; TROMBETTA, Martin  and  VAZQUEZ, Gustavo. An Evaluation of the Scarring Effect in Argentina. Desarro. soc. [online]. 2016, n.77, pp.263-304. ISSN 0120-3584.  https://doi.org/10.13043/DYS.77.7.

This study assesses the short-term effect of shifting from unemployment on wages and the subsequent employment. The so-called scarring effect has not been studied previously in Latin America and in particular in Argentina. Exploiting the rotational design of the household survey we estimate the size of the wage penalty, and the increase in the probability of entering informality, after being unemployed. Two estimation strategies are used. First, the linear model for panel data with fixed and random effects; second, the difference in difference estimator with propensity scores matching. We show that being unemployed raises the short run probability of becoming an informal worker, but its influence on wages -once controlling for the type of occupation- is not significant.

Keywords : Unemployment; wages; Argentina (Thesaurus); informality; scarring (author's keywords).

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