Unlucky Cohorts: Estimating the Long-term Effects of Entering the Labor Market in a Recession in Large Cross-sectional Data Sets

Hannes Schwandt and Till von Wachter ()
Additional contact information
Till von Wachter: University of California, Los Angeles

No 11926, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper studies the differential persistent effects of initial economic conditions for labor market entrants in the United States from 1976 to 2015 by education, gender, and race using labor force survey data. We find persistent earnings and wage reductions especially for less advantaged entrants that increases in government support only partly offset. We confirm the results are unaffected by selective migration and labor market entry by also using a double-weighted average unemployment rate at labor market entry for each birth cohort and state-of-birth cell based on average state migration rates and average cohort education rates from Census data.

Keywords: unemployment; recessions; job market entry; long-term effects (search for similar items in EconPapers)
JEL-codes: J2 J3 J6 (search for similar items in EconPapers)
Pages: 71 pages
Date: 2018-10
New Economics Papers: this item is included in nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published - published in: Journal of Labor Economics, 2019, 37 (S1), S161–S198

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https://docs.iza.org/dp11926.pdf (application/pdf)

Related works:
Journal Article: Unlucky Cohorts: Estimating the Long-Term Effects of Entering the Labor Market in a Recession in Large Cross-Sectional Data Sets (2019)
Working Paper: Unlucky Cohorts: Estimating the Long-term Effects of Entering the Labor Market in a Recession in Large Cross-sectional Data Set (2018)
Working Paper: Unlucky Cohorts: Estimating the Long-term Effects of Entering the Labor Market in a Recession in Large Cross-sectional Data Sets (2018)
Chapter: Unlucky Cohorts: Estimating the Long-Term Effects of Entering the Labor Market in a Recession in Large Cross-Sectional Data Sets (2016)
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