Do Business Cycles Have Long-Term Impact for Particular Cohorts?

Torben M. Andersen (), Jonas Maibom, Michael Svarer () and Allan Sørensen
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Torben M. Andersen: Department of Economics and Business, Aarhus University, Postal: 8210 Aarhus V, Denmark
Jonas Maibom: Department of Economics and Business, Aarhus University

Economics Working Papers from Department of Economics and Business Economics, Aarhus University

Abstract: Will the current employment crisis produce lost generations with permanently lower labour market attachment? Taking an explicit cohort perspective and based on Danish data we do not find strong persistence in employment rates at the cohort level. Younger workers tend to be more exposed to business cycle fluctuations than older workers, but importantly they recover more quickly from such set-backs than older workers for whom persistence is stronger. Moreover, no cohorts have been disproportionately affected by exposure to a sequence of adverse shocks. An explicit account of overlapping cohorts is shown to affect assessments of persistence in aggregate employment rates.

Keywords: Persistence; lost generations; employment (search for similar items in EconPapers)
JEL-codes: E32 J6 (search for similar items in EconPapers)
Pages: 38
Date: 2013-12-03
New Economics Papers: this item is included in nep-lab and nep-mac
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https://repec.econ.au.dk/repec/afn/wp/13/wp13_26.pdf (application/pdf)

Related works:
Journal Article: Do Business Cycles Have Long-Term Impact for Particular Cohorts? (2017)
Working Paper: Do Business Cycles Have Long-Term Impact for Particular Cohorts? (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:aah:aarhec:2013-26

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