The Evolution of Local Labor Markets After Recessions

Brad Hershbein and Bryan Stuart

No 22-16, Working Papers from Federal Reserve Bank of Philadelphia

Abstract: This paper studies how U.S. local labor markets respond to employment losses after recessions. Following each recession between 1973 and 2009, we find that areas that lose more jobs during the recession experience persistent relative declines in employment and population. Most importantly and contrary to prior work, these local labor markets also experience persistent decreases in the employment-population ratio and per capita earnings. Our results imply that limited population responses result in longer-lasting consequences for local labor markets than previously thought, and that recessions are followed by persistent reallocation of employment across space.

Keywords: local labor markets; recessions; employment rates; migration (search for similar items in EconPapers)
JEL-codes: J21 J61 R23 (search for similar items in EconPapers)
Pages: 88
Date: 2022-05-09
New Economics Papers: this item is included in nep-des, nep-geo, nep-his and nep-ure
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: The Evolution of Local Labor Markets after Recessions (2024)
Working Paper: The Evolution of Local Labor Markets after Recessions (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedpwp:94167

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DOI: 10.21799/frbp.wp.2022.16

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