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Persistence in the Labor Market: The Effect of Early Career Labor Market Conditions on Future Job Prospects
Apr 01, 1996
Alec R. Levenson



This paper analyzes whether people who enter the labor market during economic downturns suffer a setback in their careers that can last indefinitely. I test whether recessions experienced in a person's state of birth between the ages of 16 and 25 have effects that persist at the individual level one to two decades after the fact.

I find evidence that such adverse shocks do persist in the form of lower employment, fewer weeks worked, and lower earnings.