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Ability Matters: Effects of Youth Labor‐Market Opportunities on Long‐Term Labor‐Market Outcomes

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  • Venke Furre Haaland

Abstract

Utilizing registry data from cognitive ability tests for all Norwegian males born between 1962 and 1973, I study whether labor‐market conditions at the age of graduation have differential effects on earnings and employment for different ability groups. I find that low‐ability males are more vulnerable to local business cycles at the expected time of labor‐market entry. In particular, I demonstrate that low‐ability males suffer larger long‐term earnings losses than the rest of the population.

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  • Venke Furre Haaland, 2018. "Ability Matters: Effects of Youth Labor‐Market Opportunities on Long‐Term Labor‐Market Outcomes," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(3), pages 794-825, July.
    • Handle: RePEc:bla:scandj:v:120:y:2018:i:3:p:794-825
    DOI: 10.1111/sjoe.12248
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    Cited by:

    1. Mark Regan & Barra Roantree, 2021. "Born under a bad sign: the impact of finishing school when labour markets are weak," IFS Working Papers W21/28, Institute for Fiscal Studies.
    2. Lindgren, Petter Y. & Presterud, Ane Ofstad, 2021. "Expanding the Norwegian Armed Forces in the Time of Corona: Benefit-Cost Analysis in the Context of High Unemployment Rate," MPRA Paper 106405, University Library of Munich, Germany.
    3. Salokangas, Henri & Böckerman, Petri & Huikari, Sanna & Korhonen, Marko & Korpelainen, Raija & Svento, Rauli, 2022. "Did the Finnish depression of the early 1990s have a silver lining? The effect of unemployment on long-term physical activity," Economics & Human Biology, Elsevier, vol. 46(C).

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