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Youth Hiring and Labor Market Tightness

Author

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  • Eliza C. Forsythe

Abstract

It is well-known that recessions can lead to long-term scarring for young workers. I show that employers hire fewer young workers when there are few job openings per unemployed job seeker, while hiring rates for workers with more than 10 years of potential experience are much less cyclically volatile. During the COVID-19 pandemic, youth employment rates rebounded particularly quickly compared with other groups and historic patterns. I show this is consistent with the historic relationship between tightness and youth hiring rates, suggesting youth scarring from the COVID-19 pandemic may be less severe compared with previous recessions.

Suggested Citation

  • Eliza C. Forsythe, 2022. "Youth Hiring and Labor Market Tightness," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 117-120, May.
    • Handle: RePEc:aea:apandp:v:112:y:2022:p:117-20
    DOI: 10.1257/pandp.20221032
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    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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