Trajectories of Unemployment and Wages at Midlife

• In Event: 50220 - Section on Organizations, Occupations, and Work Roundtables
  In Refereed Roundtable (60 minute): Table 16: Unemployment, Exit, and Turnover

Abstract

Unemployment is associated with significant economic penalties, but prior studies have not considered how life course experiences of unemployment are associated with wages and income at midlife. We use the National Longitudinal Study of Youth – 1979 cohort to identify group-based trajectories of unemployment across ages 27-49, and estimate associations between unemployment trajectories and midlife wages and income. Adjusting for unequal selection into unemployment trajectories, those with High unemployment report the lowest wages and income at midlife. Surprisingly, those whose unemployment risk declines over time—the Moderate decreasing group—and those whose unemployment risk increases over time—the Low increasing group—report similar wages and income. Those with Low unemployment report the highest wages and income at age fifty. These findings add to our understanding of how the timing and persistence of unemployment exert scar effects on midlife economic status.

Authors

• Sarah Damaske, Pennsylvania State University

• Adrianne Frech, Ohio University HCOM-Cleveland

• Hilary Wething, Economic Policy Institute

• Arianna Salas, Pennsylvania State University