Impact of unemployment on skill depreciation: Evidence from China's labor market

Puntos clave

• Skill depreciation significantly increases among unemployed individuals, affecting their future employability.
• Evidence shows that after six months of unemployment, skill values drop by about 20 percent on average.
• Analysis of China's labor market data demonstrates the relationship between unemployment and skill loss.
• This finding highlights the need for policies addressing unemployment to mitigate skill degradation.