Constructing cohort-based panel data of the unemployment history of 20 OECD
countries between 1960 and 2010, this paper investigates the effect of the labormarket
condition at school graduation, approximated by a cohort’s unemployment
rate at ages 15–24, on the unemployment rates of subsequent age groups. An analysis
result indicates that a 1 percentage point higher unemployment rate when individuals
are 16–24 years old leads to a 0.14 percentage point higher unemployment at ages
25–29 and a 0.03 percentage point higher unemployment at ages 30–34.