The Effect of Labor Market Shocks across the Life Cycle

Kjell G Salvanes, Barton Willage and Alexander Willén ()

Journal of Labor Economics, 2024, vol. 42, issue 1, 121 - 160

Abstract: Economic shocks occur frequently and may cause individuals to reevaluate key life decisions in ways that have lasting consequences for themselves and the broader economy. These decisions are tied to life stages, and the effect of economic shocks may differ depending on when they occur. We exploit exogenous job separations to study the impact of adverse shocks across the life cycle on labor market outcomes and major life decisions: education, mobility, family structure, and retirement. We find significant heterogeneity across the life cycle and conclude that focusing on average effects among workers across the life cycle misses a great deal.

Date: 2024
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Related works:
Working Paper: The Effect of Labor Market Shocks Across the Life Cycle (2022)
Working Paper: The Effect of Labor Market Shocks across the Life Cycle (2022)
Working Paper: The Effect of Labor Market Shocks across the Life Cycle (2021)
Working Paper: The Effect of Labor Market Shocks Across the Life Cycle (2021)
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