The Evolution of Local Labor Markets after Recessions

Brad Hershbein and Bryan Andrew Stuart ()
Additional contact information
Bryan Andrew Stuart: Federal Reserve Bank of Philadelphia

No 15984, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper studies how U.S. local labor markets respond to employment losses that occur during recessions. Following recessions from 1973 through 2009, we find that areas that lose more jobs during the recession experience persistent relative declines in employment and population. Most importantly, these local labor markets also experience persistent decreases in the employment-population ratio, earnings per capita, and earnings per worker. Our results imply that limited population responses result in longer-lasting consequences for local labor markets than previously thought, and that recessions are followed by persistent reallocation of employment across space.

Keywords: employment rates; recessions; local labor markets; migration (search for similar items in EconPapers)
JEL-codes: J21 J61 R23 (search for similar items in EconPapers)
Pages: 96 pages
Date: 2023-03
New Economics Papers: this item is included in nep-geo, nep-his, nep-lab and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: American Economic Journal: Applied Economics, 2024, 16 (3), 399–435

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https://docs.iza.org/dp15984.pdf (application/pdf)

Related works:
Journal Article: The Evolution of Local Labor Markets after Recessions (2024)
Working Paper: The Evolution of Local Labor Markets After Recessions (2022)
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