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Macroeconomic Conditions When Young Shape Job Preferences for Life

Author

Listed:
  • Cotofan, Maria

    (King's College London)

  • Cassar, Lea

    (University of Regensburg)

  • Dur, Robert

    (Erasmus University Rotterdam)

  • Meier, Stephan

    (Columbia University)

Abstract

Preferences for monetary and non-monetary job attributes are important for understanding workers' motivation and the organization of work. Little is known, however, about how those job preferences are formed. We study how macroeconomic conditions when young shape workers' job preferences for the rest of their life. Using variation in income-per-capita across US regions and over time since the 1920s, we find that job preferences vary in systematic ways with macroeconomic conditions. Recessions create cohorts of workers who give higher priority to income, whereas booms make cohorts care more about job meaning, for the rest of their life.

Suggested Citation

  • Cotofan, Maria & Cassar, Lea & Dur, Robert & Meier, Stephan, 2020. "Macroeconomic Conditions When Young Shape Job Preferences for Life," IZA Discussion Papers 13123, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13123
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    More about this item

    Keywords

    macroeconomic condition; experience; preferences for job attributes; generational dierence;
    All these keywords.

    JEL classification:

    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • E7 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics

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