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Graduating into a recession

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  • Alba, Alfonso
  • Reggio, Iliana

Abstract

We investigate labour market outcomes among persons who graduated from college during a recession in Spain. We use administrative data that allow for longitudinal analysis for a large sample of workers. The main result is that men and women who enter the labor market in a period of rising unemployment experience a significant loss of earnings in comparison with cohorts entering just before or after the downturn. However, we find that earnings differentials become insignificant by the third year after graduation for men, and by the fifth year for women. Almost all earnings losses among unlucky college graduates appear to be caused by joblessness: the brunt of adjustment takes place through employment rather than wages.

Suggested Citation

  • Alba, Alfonso & Reggio, Iliana, 2017. "Graduating into a recession," UC3M Working papers. Economics 25363, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:25363
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    References listed on IDEAS

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    More about this item

    Keywords

    College graduates;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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