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Long-Term Effects of a Recession at Labor Market Entry in Japan and the United States

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  • Yuji Genda
  • Ayako Kondo
  • Souichi Ohta

Abstract

We examine effects of entering the labor market during a recession on subsequent employment and earnings for Japanese and American men, using comparable household labor force surveys. We find persistent negative effects of the unemployment rate at graduation for less-educated Japanese men, in contrast to temporary effects for less-educated American men. The school-based hiring system and the dismissal regulation prolong the initial loss of employment opportunities for less-educated Japanese men. The effect on earnings for more-educated groups is also stronger in Japan, although the difference between the two countries is smaller than for less-educated groups.

Suggested Citation

  • Yuji Genda & Ayako Kondo & Souichi Ohta, 2010. "Long-Term Effects of a Recession at Labor Market Entry in Japan and the United States," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
    • Handle: RePEc:uwp:jhriss:v:45:y:2010:i:1:p157-196
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    References listed on IDEAS

    as
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