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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. Glaeser, Edward L & Sacerdote, Bruce & Scheinkman, Jose A, 1996. "Crime and Social Interactions," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 507-48, May.
  2. Olivier Jean Blanchard & Lawrence Katz, 1999. "Wage Dynamics: Reconciling Theory and Evidence," NBER Working Papers 6924, National Bureau of Economic Research, Inc.
  3. Gregory Defreitas, 1986. "A Time-Series Analysis of Hispanic Unemployment," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 24-43.
  4. Kim B. Clark & Lawrence H. Summers, 1980. "Demographic Differences in Cyclical Employment Variation," NBER Working Papers 0514, National Bureau of Economic Research, Inc.
  5. repec:fth:stanho:e-95-2 is not listed on IDEAS
  6. 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.
  7. Freeman, Richard B., 1999. "The economics of crime," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 52, pages 3529-3571 Elsevier.
  8. Topel, Robert H, 1986. "Local Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S111-43, June.
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Cited by:
  1. Adolfo Sachsida & Mario Mendonça & Paulo Loureiro & Maria Gutierrez, 2010. "Inequality and criminality revisited: further evidence from Brazil," Empirical Economics, Springer, vol. 39(1), pages 93-109, August.
  2. Rich, Lauren M., 2001. "Regular and irregular earnings of unwed fathers: Implications for child support practices," Children and Youth Services Review, Elsevier, vol. 23(4-5), pages 353-376.
  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. 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).
  5. H. Naci Mocan & Stephen C. Billups & Jody Overland, 2000. "A Dynamic Model of Differential Human Capital and Criminal Activity," NBER Working Papers 7584, National Bureau of Economic Research, Inc.
  6. 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 524, Department of Economics PUC-Rio (Brazil), revised Oct 2008.
  7. David C Ribar, 2000. "County-Level Estimates of the Employment Prospects of Low-Skill Workers," Working Papers 00-11, Center for Economic Studies, U.S. Census Bureau.
  8. Devah Pager, 2003. "The mark of a criminal record," Natural Field Experiments 00319, The Field Experiments Website.
  9. 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 21624, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  10. Andrew Martin, 2000. "Social Pacts, Unemployment, and EMU Macroeconomic Policy," EUI-RSCAS Working Papers 32, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
  11. Davis, Elizabeth E. & Bosley, Stacie A., 2005. "THE IMPACT OF THE 1990s ECONOMIC BOOM ON LESS-EDUCATED WORKERS IN RURAL AMERICA," Working Papers 18918, Oregon State University, Rural Poverty Research Center (RPRC).

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