How Early Career Choices Adjust to Economic Crises

Julien Grenet, Hans Grönqvist, Edvin Hertegård (), Martin Nybom and Jan Stuhler
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Edvin Hertegård: SOFI, Stockholm University

No 1/2025, Working Papers in Economics and Statistics from Linnaeus University, School of Business and Economics, Department of Economics and Statistics

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: 56 pages
Date: 2025-11-30
New Economics Papers: this item is included in nep-lab and nep-mac
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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)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:vxesta:2025_001

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