Do youths graduating in a recession incur permanent losses?

Bart Cockx

IZA World of Labor, 2016, No 281, 281

Abstract: The Great Recession that began in 2008–2009 dramatically increased youth unemployment. But did it have long-lasting, adverse effects on the careers of youths? Are cohorts that graduate during a recession doomed to fall permanently behind those that graduate at other times? Are the impacts different for low- and high-educated individuals? If recessions impose penalties that persist over time, then more government outlays are justified to stabilize economic activity. Scientific evidence from a variety of countries shows that rigid labor markets can reinforce the persistence of these setbacks, which has important policy implications.

Keywords: scars; graduating in recessions; lost generation; labor market rigidity (search for similar items in EconPapers)
JEL-codes: E24 E32 I21 J20 J31 J60 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (23)

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