Does economic stagnation affect unemployed workers, even when re‐employed?

Abstract

The present analysis concentrates on short‐term effects of unemployment, namely on the transition from unemployment to re‐employment. This empirical analysis estimates the post‐unemployment individual earnings using a double‐selectivity approach (unemployment risk and the re‐employment probability). The data used in this paper are taken from five waves of the Swiss Labour Force Survey which has been collected by the Swiss Statistical Office since 1991.