The Effect of Military Base Closures on Young Adults

Sandberg David ()
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Sandberg David: Department of Economics, Lund University, Postal: School of Economics and Management, Box 7080, S-220 07 Lund, Sweden

No 2024:9, Working Papers from Lund University, Department of Economics

Abstract: This study examines the response among young adults to the closure of a large local employer. By using military base closures in Sweden, I find that men experience lower earnings and enroll in tertiary education. This is driven by low-ability men who choose short-term enrollment at nearby colleges and universities. For women, the closures have a positive impact after some years, with increases in both earnings and employment rates, suggesting that closing down a male-dominated employer can benefit the female labor supply.

Keywords: local economic downturn; plant closure; defense cutback; tertiary education; labor market entrants (search for similar items in EconPapers)
JEL-codes: H56 I23 J24 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2024-10-21
New Economics Papers: this item is included in nep-lma
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