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The lost generation: Effects of youth labor market opportunities on long-term labor market outcomes

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Abstract

Utilizing registry data for all Norwegian males born in 1959-1973, I demonstrate that local unemployment rates at the typical age of graduation from compulsory school (age 16) and highschool (age 19) have persistent, negative effects on males' earnings, employment, and disability pension utilization when measured as late as age 35. With data on every male IQ, I study how labor market conditions at age of graduation have differential effects for low- and high-ability males. As one would expect, low-ability males are particularly vulnerable to business cycles at the time of labor market entry.

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  • Venke Furre Haaland, 2016. "The lost generation: Effects of youth labor market opportunities on long-term labor market outcomes," Discussion Papers 835, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:835
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    File URL: https://www.ssb.no/en/forskning/discussion-papers/_attachment/254880
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    More about this item

    Keywords

    Business cycle; graduation; careers;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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