The Evolution of Local Labor Markets after Recessions

Brad Hershbein and Bryan A. Stuart

American Economic Journal: Applied Economics, 2024, vol. 16, issue 3, 399-435

Abstract: This paper studies how US local labor markets respond to employment losses that occur during recessions. Following recessions from 1973 through 2009, we find areas that lose more jobs during the recession experience persistent relative declines in employment and population. Most importantly, these local labor markets also experience persistent decreases in the employment-population ratio, earnings per capita, and earnings per worker. 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.

JEL-codes: E32 J21 J31 J61 R23 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: The Evolution of Local Labor Markets after Recessions (2023)
Working Paper: The Evolution of Local Labor Markets After Recessions (2022)
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DOI: 10.1257/app.20220132

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