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Title: Great Depression of Wages: An Investigation of the Impact of Entering the Labor Market During the Great Depression Using a Regression Discontinuity Approach

Citation Type: Miscellaneous

Publication Year: 2011

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Abstract: This paper investigates the impact of entering the labor market during the Great Depression employing a regression discontinuity approach with a discontinuity at the age of labor market entry. Using the 1940 and 1950 U.S. Censuses I investigate the medium and long-term effects of a poor labor market on labor market entrant’s earnings. Less educated individuals entering the labor market during the Great Depression experienced a seven to ten percent negative shock to their earnings ten years after the onset of the Great Depression in 1940 in comparison to those entering just prior. This negative effect diminishes, but is still evident ten more years later in 1950. I do not find a negative effect for more educated individuals and instead find a relatively noisy, positive effect.

Url: https://www.sole-jole.org/12165.pdf

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Authors: Moulton, Jeremy, G

Publisher: University of North Carolina, Chapel Hill

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

Countries: United States