The Effects of Unemployment and Underemployment on Employment Opportunities

Nunley, John M.; Pugh, Adam; Romero, Nicholas; Seals, Alan

doi:10.1177/0019793916654686

Cited by 67 publications

(38 citation statements)

References 58 publications

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“…However, some studies do not observe any stigma effects. Nunley et al (2017) find no effects of unemployment on callback, irrespective of labour market tightness. Similarly, Farber et al (2015) do not find that unemployment reduces callback, but they do find reduced callback rates for applicants over the age of 50.…”

Section: Literature Reviewmentioning

confidence: 64%

The social stigma of unemployment: consequences of stigma consciousness on job search attitudes, behaviour and success

Krug

Drasch

Jungbauer-Gans

2019

J Labour Market Res

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Studies show that the unemployed face serious disadvantages in the labour market and that the social stigma of unemployment is one explanation. In this paper, we focus on the unemployed's expectations of being stigmatized (stigma consciousness) and the consequences of such negative expectations on job search attitudes and behaviour. Using data from the panel study "Labour Market and Social Security" (PASS), we find that the unemployed with high stigma consciousness suffer from reduced well-being and health. Regarding job search, the stigmatized unemployed are more likely to expect that their chances of re-employment are low, but in contrast, they are more likely to place a high value on becoming re-employed. Instead of becoming discouraged and passive, we find that stigmatized unemployed individuals increase their job search effort compared to other unemployed individuals. However, despite their higher job search effort, the stigma-conscious unemployed do not have better re-employment chances.

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Section: Literature Reviewmentioning

confidence: 64%

The social stigma of unemployment: consequences of stigma consciousness on job search attitudes, behaviour and success

Krug

Drasch

Jungbauer-Gans

2019

J Labour Market Res

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“…Most of these studies did not find a strong relationship. Nunley et al (2017) and Farber et al (2016) did not find an effect on callback rates of unemployment gaps of different durations for young educated and older workers respectively, though Kroft et al (2013) did discover a negative effect for young workers. Barnichon and Figura (2016) argued that a key aspect of the secular changes in the U.S.…”

Section: Long-term Impacts Of Unemployment Spellsmentioning

confidence: 82%

The Decline in the U.S. Labor Force Participation Rate

2018

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After peaking around the year 2000, the Labor Force Participation Rate (LFPR) of Americans declined substantially, falling faster after the financial crisis of 2007. Since 2015, the LFPR has remained at its lowest in four decades. In this paper, we produce a comprehensive review of the literature investigating the causes of the recent decline in LFPR. We include works from the academic literature as well as gray literature from research institutes and labor market experts, and published and unpublished studies. The literature reviewed signals multiple causes behind this decline. The research on the extent to which the Great Recession had caused the decline establishes that most of it cannot be attributed to cyclical factors. Additionally, the literature examines the relative importance of trend factors, such as long-running demographic patterns, which explain at least part of the decline. The review includes articles that aim to quantify the impact of one or more factors through statistical or econometric analysis or economic modeling. Demographic trends, such as the aging of the Baby Boom Generation, explain a large portion of the decline. The rest of the decline can be attributed to factors that affect the participation rates of specific subpopulations, such as technological innovations and trade, as well as to changes in social programs, such as Social Security Disability Insurance. Some subpopulation trends are clear, but their ultimate causes are not fully understood, as is the case for female and youth LFPRs. We list these factors and point to important areas for future research. Authors' acknowledgementsWe acknowledge the support from the Michigan Retirement Research Center, which made this research possible. We thank Arie Kapteyn for useful comments. Preface After peaking around the year 2000, the Civilian Labor Force Participation Rate of Americans declined substantially. The drop became more pronounced following the financial crisis of 2007, continuing until 2015. The result is that the Labor Force Participation Rate (LFPR) is currently at its lowest level in the last four decades. Understanding the causes of this decline is fundamental in assessing the future of the American workforce and the long-term implications for retirees and in determining policy actions needed. To guide that research, our literature review establishes what is known and identifies the remaining gaps.There has not been a complete review of the literature of these causes, though there has been some partial investigation. For this study, we reviewed, systematically and comprehensively, the literature on the causes of the LFPR decline since 2000. The review includes all the studies found through systematic searches in databases, although the narrative often uses the most current and rigorous study to describe an aspect of the evidence while referring to prior or auxiliary studies as appropriate. This paper begins with an introduction to the subject and a chapter describing the search procedures. It then follows with three chapters d...

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“…They assert 'there has not been a time in the history of the Australian HE system when the magnitude of course completions contrasted so glaringly with poor labour market conditions' (p. 87). The increasing numbers of graduates entering roles that do not utilise their skills and knowledge could lead to, as reported in many studies on overeducation and underemployment, relatively fewer future career opportunities (Nunley, Pugh, Romero, & Seals, 2017).…”

Section: Discussionmentioning

confidence: 99%

The changing nature of graduate roles and the value of the degree

Jackson

2020

Journal of Higher Education Policy and Management

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This study explores industry perspectives on the changing nature of graduate roles and the importance of the undergraduate degree, and any impact these have on traditional non-graduate roles in different sectors and industries. Amid declining labour markets, it is critical to consider graduate pathways to employment and the implications of increasing numbers entering non-graduate roles on expectations and turnover. Ongoing disequilibrium in many areas of the graduate labour market points to developing our understanding of alternative pathways into professional roles beyond the undergraduate degree. Interviews were conducted with twenty-one industry members involved in recruiting and/or supervising new graduates. Findings affirmed overeducation among new recruits, highlighting the need for more transparency on employment prospects to prospective higher education students. While there has been extensive research exploring employer perceptions on graduates' preparedness for employment, there has been less consideration of alternative, developmental pathways into entry-level roles to collectively improve youth employment prospects.

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The Effects of Unemployment and Underemployment on Employment Opportunities

Cited by 67 publications

References 58 publications

The social stigma of unemployment: consequences of stigma consciousness on job search attitudes, behaviour and success

The social stigma of unemployment: consequences of stigma consciousness on job search attitudes, behaviour and success

The Decline in the U.S. Labor Force Participation Rate

The changing nature of graduate roles and the value of the degree

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