How early career choices adjust to economic crises

Julien Grenet (), Hans Grönqvist, Edvin Hertegård (), Martin Nybom () and Jan Stuhler ()
Additional contact information
Julien Grenet: Paris School of Economics and CNRS
Edvin Hertegård: SOFI, Stockholm University
Martin Nybom: IFAU, Uppsala University
Jan Stuhler: Department of Economics, Universidad Carlos III de Madrid

No 2025:20, Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy

Abstract: We study how students adjust their early career choices in response to economic crises and how these decisions affect their long-run labor market outcomes. Focusing on Sweden’s deep recession in the early 1990s—which hit the manufacturing and construction sectors hardest—we first show that students whose fathers lost jobs in these sectors were more likely to choose career paths tied to less-affected industries. These students later experienced better labor market outcomes, including higher employment and earnings. Our findings suggest that informational frictions are a key obstacle to structural change and identify career choice as an important channel through which recessions reshape labor markets in the long run.

Keywords: High School Major; Recession; Information Frictions; Structural Change (search for similar items in EconPapers)
JEL-codes: E32 I25 J24 J63 (search for similar items in EconPapers)
Pages: 58 pages
Date: 2025-11-13
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ifau.se/globalassets/pdf/se/2025/wp-20 ... -economic-crises.pdf Full text (application/pdf)

Related works:
Working Paper: How Early Career Choices Adjust to Economic Crises (2025)
Working Paper: How Early Career Choices Adjust to Economic Crises (2025)
Working Paper: How Early Career Choices Adjust to Economic Crises (2025)
Working Paper: How Early Career Choices Adjust to Economic Crises (2024)
Working Paper: How Early Career Choices Adjust to Economic Crises (2024)
Working Paper: How Early Career Choices Adjust to Economic Crises (2024)
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:hhs:ifauwp:2025_020

Access Statistics for this paper

More papers in Working Paper Series from IFAU - Institute for Evaluation of Labour Market and Education Policy IFAU, P O Box 513, SE-751 20 Uppsala, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Ali Ghooloo ( this e-mail address is bad, please contact ).