The Effects of Exposure to a Large-Scale Recession on Higher Education and Early Labor Market Outcomes

Eleanor Choi, Jisoo Hwang () and Hyelim Son
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Jisoo Hwang: Harvard University
Hyelim Son: University of Seoul

No 17938, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This study examines the effects of timing of exposure to the Asian financial crisis on higher education and early labor market outcomes. We estimate a generalized difference-in-differences model exploiting variation in age at exposure and regional severity of the recession in South Korea. Using the Census and Youth Panel data, we find that individuals from hard-hit regions are less likely to attain a college education, tend to shift away from humanities to STEM majors, and have lower-quality first jobs, than their peers in the same cohort. These effects are more pronounced among individuals who experienced the recession at younger ages.

Keywords: college major; college education; economic crisis; early labor market outcomes (search for similar items in EconPapers)
JEL-codes: E32 I21 J24 (search for similar items in EconPapers)
Date: 2025-05
New Economics Papers: this item is included in nep-lma
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