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Home Publications Born under a bad sign: the impact of finishing school when labour markets are weak

Born under a bad sign: the impact of finishing school when labour markets are weak

Mark Regan and Barra Roantree
IFS Working Paper W21/28

This paper provides evidence that finishing school when labour markets are weak leads to poor subsequent labour market prospects, particularly those leaving school at younger ages. Using administrative register data from Denmark, we find that these scarring effects are larger and more persistent for young adults from the lowest-income backgrounds.

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Report summary
Using administrative data from Denmark covering the period 1996-2018, we show that young adults who finished education when the not-in-education employment-or-training (NEET) rate was higher than normal experienced lower levels of employment even 8 years later.