Scars of Recessions in a Rigid Labor Market
(2015) , 41 pages
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- Authors
- Abstract
- We study the impact of graduating in a recession in Flanders (Belgium), i.e. in a rigid labor market. In the presence of a high minimum wage, a typical recession hardly influences the hourly wage of low educated men, but reduces working time and earnings by about 4.5% up to twelve years after graduation. For the high educated, the working time is not persistently affected, but the penalty on the hourly wage (and earnings) increases with experience, and attains roughly -6% ten years after labor market entry. We also contribute to the literature on inference with few clusters.
- Affiliations
CESifo IZA Ghent University SHERPPA
Citations
Cockx, B., & Ghirelli, C. (2015). Scars of Recessions in a Rigid Labor Market (IRES Discussion Papers 201505). https://hdl.handle.net/2078.5/192413