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Macroeconomic Conditions When Young Shape Job Preferences for Life

Author

Listed:
  • Maria Cotofan

    (Department of Political Economy, King's College London)

  • Lea Cassar

    (University of Regensburg, CESifo, and CEPR)

  • Robert Dur

    (Erasmus University Rotterdam, Tinbergen Institute, CESifo, and IZA)

  • Stephan Meier

    (Columbia Business School, CESifo, and IZA)

Abstract

Preferences for monetary and nonmonetary job attributes are important for understanding workers' motivation and the organization of work. Little is known, however, about how those job preferences are formed. We study how macroeconomic conditions when young shape workers' job preferences for life. Using variation in income-per-capita across U.S. regions and over time since the 1920s, we find that job preferences vary in systematic ways with experienced macroeconomic conditions during young adulthood. Recessions create cohorts of workers who give higher priority to income, whereas booms make cohorts care more about job meaning for the rest of their lives.

Suggested Citation

  • Maria Cotofan & Lea Cassar & Robert Dur & Stephan Meier, 2023. "Macroeconomic Conditions When Young Shape Job Preferences for Life," The Review of Economics and Statistics, MIT Press, vol. 105(2), pages 467-473, March.
    • Handle: RePEc:tpr:restat:v:105:y:2023:i:2:p:467-473
    DOI: 10.1162/rest_a_01057
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    3. Jarvis, Stephen, 2022. "How generational are generational trends in in vehicle ownership and use?," LSE Research Online Documents on Economics 113646, London School of Economics and Political Science, LSE Library.
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    7. Bičáková, Alena & Cortes, Guido Matias & Mazza, Jacopo, 2023. "Make your own luck: The wage gains from starting college in a bad economy," Labour Economics, Elsevier, vol. 84(C).
    8. Cotofan, Maria & Dur, Robert & Meier, Stephen, 2021. "Does growing up in a recession increase compassion? The case of attitudes towards immigration," LSE Research Online Documents on Economics 114427, London School of Economics and Political Science, LSE Library.
    9. Nibbering, Didier & Oosterveen, Matthijs & Silva, Pedro Luís, 2022. "Clustered Local Average Treatment Effects: Fields of Study and Academic Student Progress," IZA Discussion Papers 15159, Institute of Labor Economics (IZA).
    10. McNeil, Andrew & Lee, Neil & Luca, Davide, 2022. "The long shadow of local decline: birthplace economic conditions, political attitudes, and long-term individual economic outcomes in the UK," LSE Research Online Documents on Economics 113681, London School of Economics and Political Science, LSE Library.
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    15. Shimon Kogan & Florian H. Schneider & Roberto A. Weber, 2021. "Self-serving biases in beliefs about collective outcomes," ECON - Working Papers 379, Department of Economics - University of Zurich.
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    18. Georgarakos, Dimitris & Popov, Alexander, 2023. "I (Don't) Owe You: Sovereign Default and Borrowing Behavior," CEPR Discussion Papers 18300, C.E.P.R. Discussion Papers.
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    More about this item

    JEL classification:

    • M5 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • E7 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics

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