摘要：Using the data from the Survey of Income and Program Participation (SIPP) between 1996 and 2013, this study
estimates the effect of unemployment duration on wages for workers between ages 25 and 64. The empirical strategy
assumes a joint estimation of the job search and reemployment wage processes. The study also assumes the
decomposition strategy of this effect into the human capital depreciation and stigma effects with the stigma effect
refering to employers' perception that workers with longer duration of unemployment have lower productivity as
compared to workers with shorter duration of unemployment. The results imply a substantial decline in the
unemployment duration effect in the joint model relative to the OLS model. The main conclusion is that
unemployment scarring can be mainly explained by differences in individual unobserved traits and to a lesser extent by
human capital depreciation.
