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Area Economic Conditions and the Labor Market Outcomes of Young Men in the 1990s Expansion

  • Richard B. Freeman
  • William M. Rodgers III

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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File URL: http://www.nber.org/papers/w7073.pdf
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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
Date of revision:
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
Note: LS
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  1. Gregory Defreitas, 1986. "A Time-Series Analysis of Hispanic Unemployment," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 24-43.
  2. Edward E. Glaeser & Bruce Sacerdote & Jose A. Scheinkman, 1995. "Crime and Social Interactions," Harvard Institute of Economic Research Working Papers 1738, Harvard - Institute of Economic Research.
  3. Lawrence F. Katz & Olivier Blanchard, 1999. "Wage Dynamics: Reconciling Theory and Evidence," American Economic Review, American Economic Association, vol. 89(2), pages 69-74, May.
  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. Topel, Robert H, 1986. "Local Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S111-43, June.
  6. 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.
  7. Leslie S. Stratton, 1993. "Racial Differences in Men's Unemployment," ILR Review, Cornell University, ILR School, vol. 46(3), pages 451-463, April.
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