This paper shows that earnings losses after unemployment increase with age. First, older employees start out with … employees are lower even six years after the unemployment spell. If those with non-employment spells re-enter the labour market …

On the basis of a theoretical model, we argue that higher aggregate unemployment affects individual returns to … education. We therefore include aggregate unemployment and an interaction term between unemployment and the individual education … level in a standard Mincer equation. Our results show that an increase in regional unemployment by 1% decreases the returns …