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Differential effects of graduating during a recession across gender and race

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  • Ayako Kondo

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Abstract

This study examines the differential effects of the unemployment rate at labor market entry, defined as the time of leaving school, on subsequent wages across gender and race using the National Longitudinal Survey of Youth 79. Results suggest that the negative effect of a recession at entry on wages is weaker for women. The differences between blacks and whites are not statistically significant for both genders. These results are robust to controlling for the endogenous timing and location of entry, using an instrumental variable based on the predicted year of graduation and the state of residence at age 14. JEL codes: J01, J14, J16. Copyright Kondo. 2015

Suggested Citation

  • Ayako Kondo, 2015. "Differential effects of graduating during a recession across gender and race," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-24, December.
  • Handle: RePEc:spr:izalbr:v:4:y:2015:i:1:p:1-24:10.1186/s40172-015-0040-6
    DOI: 10.1186/s40172-015-0040-6
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Venke Furre Haaland, 2016. "The lost generation: Effects of youth labor market opportunities on long-term labor market outcomes," Discussion Papers 835, Statistics Norway, Research Department.
    2. Joseph G. Altonji & Lisa B. Kahn & Jamin D. Speer, 2016. "Cashier or Consultant? Entry Labor Market Conditions, Field of Study, and Career Success," Journal of Labor Economics, University of Chicago Press, vol. 34(S1), pages 361-401.
    3. repec:eee:labeco:v:53:y:2018:i:c:p:75-96 is not listed on IDEAS
    4. Bart Cockx, 2016. "Do youths graduating in a recession incur permanent losses?," IZA World of Labor, Institute of Labor Economics (IZA), pages 281-281, August.
    5. Hotchkiss, Julie L. & Moore, Robert E., 2018. "Some Like It Hot: Assessing Longer-Term Labor Market Benefits from a High-Pressure Economy," FRB Atlanta Working Paper 2018-1, Federal Reserve Bank of Atlanta, revised 01 Oct 2018.
    6. repec:bpj:bejeap:v:17:y:2017:i:2:p:37:n:5 is not listed on IDEAS
    7. Beartice Brunner & Andreas Kuhn, 2009. "To Shape the Future: How Labor Market Entry Conditions Affect Individuals’s Long-Run Wage Profiles," NRN working papers 2009-29, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    8. Johanna Maclean, 2014. "Does leaving school in an economic downturn impact access to employer-sponsored health insurance?," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-27, December.
    9. Ayako Kondo, 2012. "Gender-specific labor market conditions and family formation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(1), pages 151-174, January.
    10. Beatrice Brunner & Andreas Kuhn, 2014. "The impact of labor market entry conditions on initial job assignment and wages," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(3), pages 705-738, July.
    11. Haaland, Venke Furre, 2013. "The Lost Generation: Effects of Youth Labor Market Opportunities on Long-Term Labor Market Outcomes," UiS Working Papers in Economics and Finance 2013/8, University of Stavanger.
    12. Beatrice Brunner & Andreas Kuhn, 2009. "To shape the future: How labor market entry conditions affect individuals' long-run wage profiles," IEW - Working Papers 457, Institute for Empirical Research in Economics - University of Zurich.
    13. Johanna Catherine Maclean & Reginald Covington & Asia Sikora Kessler, 2016. "Labor Market Conditions At School-Leaving: Long-Run Effects On Marriage And Fertility," Contemporary Economic Policy, Western Economic Association International, vol. 34(1), pages 63-88, January.
    14. Hershbein Brad J., 2012. "Graduating High School in a Recession: Work, Education, and Home Production," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 12(1), pages 1-32, January.
    15. Mai Dao & Prakash Loungani, 2010. "The Human Cost of Recessions; Assessing It, Reducing It," IMF Staff Position Notes 2010/17, International Monetary Fund.
    16. Antwi, Yaa Akosa & Maclean, J. Catherine, 2017. "State Health Insurance Mandates and Labor Market Outcomes: New Evidence on Old Questions," IZA Discussion Papers 10578, Institute of Labor Economics (IZA).
    17. Cockx, Bart & Ghirelli, Corinna, 2016. "Scars of recessions in a rigid labor market," Labour Economics, Elsevier, vol. 41(C), pages 162-176.
    18. Brunner, Beatrice & Kuhn, Andreas, 2009. "To Shape the Future: How Labor Market Entry Conditions Affect Individuals' Long-Run Wage Profiles," IZA Discussion Papers 4601, Institute of Labor Economics (IZA).
    19. Wiljan van den Berge & Arne Brouwers, 2017. "A lost generation? The early career effects of graduating during a recession," CPB Discussion Paper 356, CPB Netherlands Bureau for Economic Policy Analysis.
    20. Taylor, Mark P., 2013. "The labour market impacts of leaving education when unemployment is high: evidence from Britain," ISER Working Paper Series 2013-12, Institute for Social and Economic Research.

    More about this item

    Keywords

    Gender; Race; Recession at entry;

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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