The Long-Run Effects of Recessions on Education and Income

Bryan Stuart

Working Papers from The George Washington University, Institute for International Economic Policy

Abstract: This paper examines the long-run effects of the 1980-1982 recession on education and income. Using confidential Census data, I estimate difference-in-differences regressions that exploit variation across counties in recession severity and across cohorts in age at the time of the recession. For individuals age 0-10 in 1979, a 10 percent decrease in earnings per capita in their county of birth reduces four-year college degree attainment by 9 percent and income in adulthood by 3 percent. Simple calculations suggest that, in aggregate, the 1980-1982 recession led to 1-3 million fewer college graduates and $64-$145 billion less earned income per year.

Keywords: human capital; education; income; recessions (search for similar items in EconPapers)
JEL-codes: E32 I20 I30 J13 J24 (search for similar items in EconPapers)
Pages: 105 pages
Date: 2017
New Economics Papers: this item is included in nep-edu, nep-his and nep-mac
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Citations: View citations in EconPapers (13)

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http://www2.gwu.edu/~iiep/assets/docs/papers/2017WP/StuartIIEP2017-25.pdf (application/pdf)

Related works:
Journal Article: The Long-Run Effects of Recessions on Education and Income (2022)
Working Paper: The Long-Run Effects of Recessions on Education and Income (2019)
Working Paper: The Long-Run Effects of Recessions on Education and Income (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:gwi:wpaper:2017-25

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