Full Citation

Title: Recessions and Local Labor Market Hysteresis

Citation Type: Working Paper

Publication Year: 2020

ISBN:

ISSN:

DOI:

NSFID:

PMCID:

PMID:

Abstract: This paper studies the effects of recessions on U.S. local labor markets. Using variation in sudden employment losses during each recession between 1973 and 2009, we find that areas more affected by recessions experience highly persistent declines in employment and population. Most importantly, and contrary to prior work, every recession we study generates local labor market hysteresis in the form of persistent decreases in the employment-population ratio and earnings per capita. Our results imply that recessions induce persistent reallocation of employment across space, and that limited population responses result in longer-lasting disruptions to local labor markets than previously thought.

Url: https://research.upjohn.org/cgi/viewcontent.cgi?article=1344&context=up_workingpapers

User Submitted?: No

Authors: Hershbein, Brad J.; Stuart, Bryan A.

Series Title: Upjohn Institute Working Papers

Publication Number: 20-325

Institution: Upjohn Institute

Pages:

Publisher Location:

Data Collections: IPUMS USA, IPUMS NHGIS

Topics: Labor Force and Occupational Structure, Other

Countries: