The Long-Run Effects of Job Changes and Unemployment among Male Teenagers

Drawing on the Young Men's Cohort of the National Longitudinal Surveys, we examine the long-run effects of teenage labor market experience on subsequent adult wages. Our study expands on earlier work by considering the effects of both unemployment and job mobility during the period of transition from school to work. We conclude that the net effect of job-switching during the teen years is a positive one for both blacks and whites. Furthermore, we find that the "scarring" effects of teen unemployment are overstated and that short periods of unemployment are associated with higher average wages some 8-10 years later. Finally, the net effect of teenage labor market experience on subsequent wages is positive for both races, though more so for blacks. The black teen labor market experience actually serves to narrow the subsequent black/white wage differential.