Employment persistence

Charles Fleischman (charles.fleischman@frb.gov) and Joshua H. Gallin
Additional contact information
Joshua H. Gallin: https://www.federalreserve.gov/econres/joshua-gallin.htm

No 2001-25, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: The recent U.S. expansion has provided employment experience to individuals at tail of the skill distribution. Will these opportunities bestow persistent benefits in the form of greater future employability? Using synthetic cohorts constructed from the CPS, this paper estimates the degree of persistence in cohort-level employment rates in excess of persistence in aggregate macroeconomic conditions. This approach is in some ways superior to testing for hysteresis in the aggregate unemployment rate because it abstracts away from compositional changes in the labor force by focusing on particular demographic groups. After controlling for aggregate conditions, there is little evidence of significant persistence in cohorts' employment rates; the effects of aggregate shocks are essentially dissipated within three years. However, economic conditions that prevailed when the cohorts first entered the labor market significantly affect the average lifetime employment rate of cohorts of less-educated men.

Keywords: Employment (Economic theory); Labor market (search for similar items in EconPapers)
Date: 2001
New Economics Papers: this item is included in nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.federalreserve.gov/pubs/feds/2001/200125/200125abs.html (text/html)
http://www.federalreserve.gov/pubs/feds/2001/200125/200125pap.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfe:2001-25

Access Statistics for this paper

More papers in Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.) Contact information at EDIRC.
Bibliographic data for series maintained by Ryan Wolfslayer ; Keisha Fournillier (ryan.d.wolfslayer@frb.gov).