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Area Economic Conditions and the Labor Market Outcomes of Young Men in the 1990s Expansion

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  • Richard B. Freeman
  • William M. Rodgers III

Abstract

The current expansion has shattered the length of the previous longest peace-time boom and brought unemployment rates below four percent in 44 percent of metropolitan areas. We estimate the expansion's impact on the labor market outcomes of less-educated men. We find that young men, especially young African American men in tight labor markets experienced a boost in employment and earnings. Adult men had no gains, and their earnings barely changed even in areas with unemployment rates below 4 percent. Youths have higher earnings and employment in low crime states and poorer labor market outcomes in states where incarcerations are high.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7073.

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Date of creation: Apr 1999
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Publication status: published as Cherry, Robert and William M. Rodgers III (eds.) Prosperity for All? The Economic Boom and African Americans. NY: Russell Sage Foundation, 2000.
Handle: RePEc:nbr:nberwo:7073

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  1. Edward L. Glaeser & Bruce Sacerdote & Jose A. Scheinkman, 1995. "Crime and Social Interactions," NBER Working Papers 5026, National Bureau of Economic Research, Inc.
  2. Freeman, Richard B., 1999. "The economics of crime," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 52, pages 3529-3571 Elsevier.
  3. Kim B. Clark & Lawrence H. Summers, 1980. "Demographic Differences in Cyclical Employment Variation," NBER Working Papers 0514, National Bureau of Economic Research, Inc.
  4. Gregory Defreitas, 1986. "A Time-Series Analysis of Hispanic Unemployment," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 24-43.
  5. Leslie S. Stratton, 1993. "Racial differences in men's unemployment," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(3), pages 451-463, April.
  6. Olivier Jean Blanchard & Lawrence Katz, 1999. "Wage Dynamics: Reconciling Theory and Evidence," NBER Working Papers 6924, National Bureau of Economic Research, Inc.
  7. Topel, Robert H, 1986. "Local Labor Markets," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 94(3), pages S111-43, June.
  8. repec:fth:stanho:e-95-2 is not listed on IDEAS
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Cited by:
  1. Couch, Kenneth A. & Fairlie, Robert W., 2008. "Last Hired, First Fired? Black-White Unemployment and the Business Cycle," IZA Discussion Papers 3713, Institute for the Study of Labor (IZA).
  2. H. Naci Mocan & Stephen C. Billups & Jody Overland, 2005. "A Dynamic Model of Differential Human Capital and Criminal Activity," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 72(288), pages 655-681, November.
  3. Mustard, David B., 2010. "How Do Labor Markets Affect Crime? New Evidence on an Old Puzzle," IZA Discussion Papers 4856, Institute for the Study of Labor (IZA).
  4. David C Ribar, 2000. "County-Level Estimates of the Employment Prospects of Low-Skill Workers," Working Papers, Center for Economic Studies, U.S. Census Bureau 00-11, Center for Economic Studies, U.S. Census Bureau.
  5. Rich, Lauren M., 2001. "Regular and irregular earnings of unwed fathers: Implications for child support practices," Children and Youth Services Review, Elsevier, Elsevier, vol. 23(4-5), pages 353-376.
  6. Adolfo Sachsida & Mario Mendonça & Paulo Loureiro & Maria Gutierrez, 2010. "Inequality and criminality revisited: further evidence from Brazil," Empirical Economics, Springer, Springer, vol. 39(1), pages 93-109, August.
  7. Davis, Elizabeth E. & Connolly, Laura S. & Weber, Bruce A., 1999. "Employment Outcomes For Low-Income Adults In Rural And Urban Labor Markets," 1999 Annual meeting, August 8-11, Nashville, TN, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 21624, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  8. João Manoel Pinho de Mello & Eduardo Zilberman, 2006. "Does crime affect economic decisions? An empirical investigation of savings in a high-crime environment," Textos para discussão, Department of Economics PUC-Rio (Brazil) 524, Department of Economics PUC-Rio (Brazil), revised Oct 2008.
  9. Davis, Elizabeth E. & Bosley, Stacie A., 2005. "THE IMPACT OF THE 1990s ECONOMIC BOOM ON LESS-EDUCATED WORKERS IN RURAL AMERICA," Working Papers, Oregon State University, Rural Poverty Research Center (RPRC) 18918, Oregon State University, Rural Poverty Research Center (RPRC).
  10. Andrew Martin, 2000. "Social Pacts, Unemployment, and EMU Macroeconomic Policy," EUI-RSCAS Working Papers, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS) 32, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
  11. Devah Pager, 2003. "The mark of a criminal record," Natural Field Experiments, The Field Experiments Website 00319, The Field Experiments Website.

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