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The Effects of Exposure to a Large-Scale Recession on Higher Education and Early Labor Market Outcomes

Author

Listed:
  • Choi, Eleanor J.

    (Hanyang University)

  • Hwang, Jisoo

    (Harvard University)

  • Son, Hyelim

    (University of Seoul)

Abstract

This study examines the effects of timing of exposure to the Asian financial crisis on higher education and early labor market outcomes. We estimate a generalized difference-in-differences model exploiting variation in age at exposure and regional severity of the recession in South Korea. Using the Census and Youth Panel data, we find that individuals from hard-hit regions are less likely to attain a college education, tend to shift away from humanities to STEM majors, and have lower-quality first jobs, than their peers in the same cohort. These effects are more pronounced among individuals who experienced the recession at younger ages.

Suggested Citation

  • Choi, Eleanor J. & Hwang, Jisoo & Son, Hyelim, 2025. "The Effects of Exposure to a Large-Scale Recession on Higher Education and Early Labor Market Outcomes," IZA Discussion Papers 17938, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp17938
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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