Scars of recessions in a rigid labor market
[The authors] 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 per cent up to 12 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 per cent 10 years after labor market entry. [The authors] also contribute to the literature on inference with ... Show more
Authors: Cockx, Bart; Ghirelli, Corinna
Published: Bonn, Germany, IZA, 2015
Resource type: Report, paper or authored book
Physical description: 41 p.
Access item:
http://ftp.iza.org/dp8889.pdf
