Why don't firms hire young workers during recessions? A replication of Forsythe (The Economic Journal, 2022)

Jonathan Créchet, Jing Cui, Barbara Sadaba and Antoine Sawyer ()
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Antoine Sawyer: Department of Economics, Queen’s University

No 2405E, Working Papers from University of Ottawa, Department of Economics

Abstract: We replicate results of Forsythe (2022) studying the cyclicality of individuals' labor market transitions conditional on their experience. Using Current Population Survey (CPS) data and state-level variations in the unemployment rate, this paper shows that the hiring probability of youths is more sensitive to business-cycle conditions than for experienced individuals. We replicate the main results in this paper by reconstructing the dataset using data from the IPUMS-CPS database (Flood et al. (2020)) and recoding the paper's main regressions from scratch. We also conduct a robustness replicability analysis and show that the paper's main results are robust in terms of statistical significance to (i) extending the sample period from 1994-2014 to 1994-2019 and (ii) using MSA-level unemployment variation instead of state-level variation. These extensions reduce the magnitude of the main effects of interest, but the paper's key conclusions are unaffected.

Keywords: Worker flows; Business cycles; Life cycle. (search for similar items in EconPapers)
JEL-codes: E24 J63 J64 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2024
New Economics Papers: this item is included in nep-lab
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Working Paper: Why Don't Firms Hire Young Workers During Recessions? A Replication of Forsythe (The Economic Journal, 2022) (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:ott:wpaper:2405e

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