Do Business Cycles Have Long-Term Impact for Particular Cohorts?

Torben M. Andersen (), Jonas Maibom (), Michael Svarer and Allan Sørensen
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Torben M. Andersen: Aarhus University
Jonas Maibom: Aarhus University

No 7817, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Will the current employment crisis produce lost generations with permanently lower labour market attachment? Taking an explicit cohort perspective and based on Danish data we do not find strong persistence in employment rates at the cohort level. Younger workers tend to be more exposed to business cycle fluctuations than older workers, but importantly they recover more quickly from such set-backs than older workers for whom persistence is stronger. Moreover, no cohorts have been disproportionately affected by exposure to a sequence of adverse shocks. An explicit account of overlapping cohorts is shown to affect assessments of persistence in aggregate employment rates.

Keywords: employment; lost generations; persistence (search for similar items in EconPapers)
JEL-codes: E32 J6 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2013-12
New Economics Papers: this item is included in nep-mac
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Published - published in: LABOUR, 2017, 31 (3), 309 - 336

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Related works:
Journal Article: Do Business Cycles Have Long-Term Impact for Particular Cohorts? (2017)
Working Paper: Do Business Cycles Have Long-Term Impact for Particular Cohorts? (2013)
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