Full Citation

Title: The Long-Run Effects of Recessions on Education and Income

Citation Type: Working Paper

Publication Year: 2019

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Abstract: This paper examines the long-run effects of the 1980-1982 recession on education and income. Using confidential Census data, I estimate difference-in-differences regressions that exploit variation across counties in recession severity and across cohorts in age at the time of the recession. For individuals age 0-10 in 1979, a 10 percent decrease in earnings per capita in their county of birth reduces four-year college degree attainment by 10 percent and income in adulthood by 3 percent. Simple calculations suggest that, in aggregate, the 1980-1982 recession led to 0.8-1.8 million fewer college graduates and $42-$87 billion less earned income per year.

Url: http://ftp.iza.org/dp12426.pdf

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Authors: Stuart, Bryan, A

Series Title: IZA Discussion Paper Series

Publication Number: 12426

Institution: IZA

Pages:

Publisher Location: Bonn

Data Collections: IPUMS USA

Topics: Education, Labor Force and Occupational Structure, Migration and Immigration, Poverty and Welfare

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