Do Business Cycles Have Long-Term Impact for Particular Cohorts?
AbstractWill 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.
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Bibliographic InfoPaper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2013-26.
Date of creation: 03 Dec 2013
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Persistence; lost generations; employment;
Other versions of this item:
- Andersen, Torben M. & Maibom Pedersen, Jonas & Svarer, Michael & Sørensen, Allan, 2013. "Do Business Cycles Have Long-Term Impact for Particular Cohorts?," IZA Discussion Papers 7817, Institute for the Study of Labor (IZA).
- J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-12-15 (All new papers)
- NEP-LAB-2013-12-15 (Labour Economics)
- NEP-MAC-2013-12-15 (Macroeconomics)
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