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Lost in recessions: youth employment and earnings in Spain

Author

Listed:
  • Samuel Bentolila

    (CEMFI)

  • Florentino Felgueroso

    (Fedea)

  • Marcel Jansen

    (Universidad Autónoma de Madrid)

  • Juan F. Jimeno

    (Banco de España, Universidad de Alcalá)

Abstract

Young workers in Spain face the unprecedented impact of the Great Recession and the COVID-19 crisis in short sequence. Moreover, they have also experienced a deterioration in their employment and earnings over the last three decades. In this paper, we document this evolution and adopt a longitudinal approach to show that employment and earnings losses suffered by young workers during recessions are not made up in the subsequent expansions. We also estimate the size of the scarring effects of entering the job market in a recession for college-educated workers during their first decade in the labor market. Our empirical estimates indicate that while there is some evidence of scarring effects, the driving force is a trend worsening of youth labor market outcomes.

Suggested Citation

  • Samuel Bentolila & Florentino Felgueroso & Marcel Jansen & Juan F. Jimeno, 2022. "Lost in recessions: youth employment and earnings in Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 13(1), pages 11-49, May.
    • Handle: RePEc:spr:series:v:13:y:2022:i:1:d:10.1007_s13209-021-00244-6
    DOI: 10.1007/s13209-021-00244-6
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    Cited by:

    1. Maia Güell & Cristina Lafuente & Manuel Sánchez & Hélène Turon, 2022. "So different yet so alike: micro and macro labour market outcomes in Germany and Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 13(1), pages 147-169, May.
    2. Jose Garcia-Louzao & Gabriel Burdin, 2023. "Employee Owned Firms and the Careers of Young Workers," Bank of Lithuania Working Paper Series 113, Bank of Lithuania.
    3. Giammarco Alderotti & Raffaele Guetto & Paolo Barbieri & Stefani Scherer & Daniele Vignoli, 2022. "Unstable Employment Careers and Completed Fertility before and after Labour Market Deregulation in Italy," Econometrics Working Papers Archive 2022_03, Universita' degli Studi di Firenze, Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti".

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