The Long-Term Effects of Labor Market Entry in a Recession: Evidence from the Asian Financial Crisis

Eleanor Choi, Jaewoo Choi and Hyelim Son
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Jaewoo Choi: Korea Development Institute
Hyelim Son: University of Seoul

No 19-312, Upjohn Working Papers from W.E. Upjohn Institute for Employment Research

Abstract: This paper investigates the long-term effects of initial labor market conditions by comparing cohorts who graduated from college before, during, and after the 1997–1998 Asian financial crisis. We measure the overall welfare impact by examining not only labor market activities but also family formation and wealth accumulation. Using data from 20 waves of the Korean Labor and Income Panel Study, we find a substantial and persistent reduction in employment, earnings, marriage, fertility, and financial assets among men who graduated in a bad economy. For women, limited job opportunities at graduation result in an increase in childbearing.

Keywords: recession; financial crisis; long-term effects; college graduates (search for similar items in EconPapers)
JEL-codes: E21 E32 J13 J21 (search for similar items in EconPapers)
Date: 2019-08
New Economics Papers: this item is included in nep-dem, nep-mac and nep-sea
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Related works:
Journal Article: The long-term effects of labor market entry in a recession: Evidence from the Asian financial crisis (2020)
Working Paper: The Long-Term Effects of Labor Market Entry in a Recession: Evidence from the Asian Financial Crisis (2020)
Working Paper: The Long-Term Effects of Labor Market Entry in a Recession: Evidence from the Asian Financial Crisis (2020)
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