Ni Luh Riska Yusmarisa
Department of Hospitality Bali Tourism Polytechnic, Bali Tourism Polytechnic, Ministry of Tourism Indonesia, Bali, Indonesia, Badung, 80362, Indonesia
DOI : https://doi.org/10.47191/ijmra/v8-i07-17Google Scholar Download Pdf
ABSTRACT:
Labor is a human resource that is important for the progress of a country and is necessary for economic growth. Understanding the relationship between labor and the scarring effect can help to minimize or reduce the occurrence of the scarring effect in the future. The potential effects of scarring effects on productivity and labor markets are analyzed in macro and microeconomics. The methodology used is a literature review that presents the scarring effect that occurs in several countries and improvement steps to reduce the scarring effect. Policy implications are identified by synthesizing previous research. The results showed that the scarring effect occurred varied across several countries. The scarring effect predicts that the current unemployment effect has the potential to last for the remainder of an individual's working life. The right policy will certainly be useful in dealing with the scarring effect of labor in the future. Knowing the scarring effect of labor in several countries will help determine policies that suit needs. Unemployment leaves young workers with scars. The failure of the youth labor market is actually costly even though most adolescents have a relatively short period of unemployment, economic shocks that cause the scarring effect of the labor market present important policy issues. These findings are important and urgent to build resilience to avoid the scarring effect for countries vulnerable to natural disasters. The implication of this literature review is that it can contribute to the workforce experiencing a scarring effect and prevent the occurrence of a scarring effect in the future. Regarding the direction of further research, this research can be continued by conducting research on other scarring effects besides the scarring effect of labor. This is done to find out the scarring effect other than labor. This research and subsequent research are important for policymakers to mitigate the potential long-term effects of the scarring effect in the future.
KEYWORDS:Scarring Effect, Unemployment, Micro, and Macroeconomics
REFERENCES1) Arulampalam, W. (2001). Is unemployment really scarring? Effects of unemployment experiences on wages. Economic Journal, 111(475), 585–606. https://doi.org/10.1111/1468-0297.00664
2) Bailey, J., Oliveri, A., & Levin, E. (2013). 基因的改变NIH Public Access. Bone, 23(1), 1–7. https://doi.org/10.1093/sf/sor031.Better
3) Borland, J. (2020). Scarring effects: A review of Australian and international literature. Australian Journal of Labour Economics, 23(2), 174–187.
4) Dickson, M., Donnelly, M., Kameshwara, K., & Lazetic, P. (2022). The scarring effect of graduate underemployment: evidence from the UK *. 17364.
5) Egdell, V., & Beck, V. (2020). A Capability Approach to Understand the Scarring Effects of Unemployment and Job Insecurity: Developing the Research Agenda. Work, Employment and Society, 34(5), 937–948. https://doi.org/10.1177/0950017020909042
6) Fabrizi, E., & Rocca, A. (2024). The Scarring Effect of a Prolonged School-to-Work Transition on Young People’s Future Careers and the Influence of Family Background: The Scarring Effect of a Prolonged School-to-Work Transition…: E. Fabrizi, A. Rocca. Italian Economic Journal. https://doi.org/10.1007/s40797-024-00302-5
7) Glatt, J., & Wunnava, P. V. (2018). Help Not Wanted: The Dismal Science of Youth Unemployment’s Scarring Effect. IBusiness, 10(02), 51–84. https://doi.org/10.4236/ib.2018.102004
8) Helbling, L. A., & Sacchi, S. (2014). Scarring effects of early unemployment among young workers with vocational credentials in Switzerland. Empirical Research in Vocational Education and Training, 6(1), 1–22. https://doi.org/10.1186/s40461-014-0012-2
9) Huckfeldt, C. (2016). UNDERSTANDING THE SCARRING EFFECT OF RECESSIONS CHRISTOPHER HUCKFELDT Department of Economics Cornell University. November 2013.
10) Lian, W., Moran, J. R., & Vishvesh, R. (2022). Natural Disasters and Scarring Effects. IMF Working Papers, 2022(253), 1. https://doi.org/10.5089/9798400227172.001
11) Lucidi, F. S., & Semmler, W. (2023). Long-run scarring effects of meltdowns in a small-scale nonlinear quadratic model. Journal of Macroeconomics, 75. https://doi.org/10.1016/j.jmacro.2022.103487
12) Mousteri, V., Daly, M., & Delaney, L. (2018). The scarring effect of unemployment on psychological well-being across Europe. Social Science Research, 72(March), 146–169. https://doi.org/10.1016/j.ssresearch.2018.01.007
13) Nilsen, O. A., & Reiso, K. H. (2021). Scarring Effects of Unemployment. SSRN Electronic Journal, December. https://doi.org/10.2139/ssrn.1976529
14) Nordström Skans, O. (2004). Scarring effects of the first labour market experience : A sibling based analysis. IFAu Working Paper Series 2004:14. IFAU - Institute for Labour Market Policy Evaluation, Uppsala, 14, 1–44.
15) Pennerstorfer, A., Reitzinger, S., & Schneider, U. (2020). The Scarring Effect of the 2008 Economic Crisis: Growth and Growth Decline in Austria’s Nonprofit Social Services Sector. Voluntas, 31(6), 1173–1187. https://doi.org/10.1007/s11266-020-00234-5
16) Pritadrajati, D. S., Kusuma, A. C. M., & Saxena, S. C. (2021). Scarred for life: Lasting consequences of unemployment and informal self-employment: An empirical evidence from Indonesia. Economic Analysis and Policy, 70(2), 206–219. https://doi.org/10.1016/j.eap.2021.02.009
17) Quarina, Q. (2017). An analysis of the determinants and scarring effects of economic inactivity and unemployment in the UK. Na, NA(NA), NA-NA.
18) Ridhwan, M., Rezki, J., Ramayandi, A., Sasongko, A., & Andariesta, D. (2022). The Potential Scarring Effect of Covid-19 on Productivity and Labor Market: The Case of Indonesia. https://www.bi.go.id/en/publikasi/kajian/Pages/The-Potential-Scarring-Effect-of-Covid-19-on-Productivity-and-Labor-Market-The-Case-of-Indonesia.aspx
19) Strandh, M., Winefield, A., Nilsson, K., & Hammarström, A. (2014). Unemployment and mental health scarring during the life course. European Journal of Public Health, 24(3), 440–445. https://doi.org/10.1093/eurpub/cku005
20) Tomlinson, M., & Tholen, G. (2023). Scarring effects for young people in challenging economic times: a conceptual synthesis and future policy and research agenda. Labour & Industry, 33(3), 308–325. https://doi.org/10.1080/10301763.2023.2251216
21) Xu, D., Jin, S., Pun, N., Guo, J., & Wu, X. (2024). The Scarring Effect of First Job Precarity: New Evidence from a Panel Study in Hong Kong. Work, Employment and Society, 38(1), 206–225. https://doi.org/10.1177/09500170221112221
Volume 08 Issue 07 July 2025
There is an Open Access article, distributed under the term of the Creative Commons Attribution – Non Commercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting and building upon the work for non-commercial use, provided the original work is properly cited.
Our Services and Policies
Authors should prepare their manuscripts according to the instructions given in the authors' guidelines. Manuscripts which do not conform to the format and style of the Journal May be returned to the authors for revision or rejected.
The Journal reserves the right to make any further formal changes and language corrections necessary in a manuscript accepted for publication so that it conforms to the formatting requirements of the Journal.
International Journal of Multidisciplinary Research and Analysis will publish 12 monthly online issues per year,IJMRA publishes articles as soon as the final copy-edited version is approved. IJMRA publishes articles and review papers of all subjects area.
Open access is a mechanism by which research outputs are distributed online, Hybrid open access journals, contain a mixture of open access articles and closed access articles.
International Journal of Multidisciplinary Research and Analysis initiate a call for research paper for Volume 09 Issue 10 (October 2026).
PUBLICATION DATES:
1) Last Date of Submission : 26 October 2026.
2) Article published within a week.
3) Submit Article : editor@ijmra.in or Online
Why with us
1 : IJMRA only accepts original and high quality research and technical papers.
2 : Paper will publish immediately in current issue after registration.
3 : Authors can download their full papers at any time with digital certificate.
The Editors reserve the right to reject papers without sending them out for review.
Authors should prepare their manuscripts according to the instructions given in the authors' guidelines. Manuscripts which do not conform to the format and style of the Journal May be returned to the authors for revision or rejected. The Journal reserves the right to make any further formal changes and language corrections necessary in a manuscript accepted for publication so that it conforms to the formatting requirements of the Journal.
