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Jürges, Hendrik

The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Ludwig, Sandra / Schmitz, Hendrik

Ed. by Barigozzi, Francesca / Brunner, Johann / Fleck, Robert / Mastrobuoni, Giovanni / Mendola, Mariapia / Requate, Till / de Vries, Frans / Wenzel, Tobias


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1935-1682
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Volume 16, Issue 1

Issues

Volume 6 (2006)

Volume 4 (2004)

Volume 2 (2002)

Volume 1 (2001)

Wages, Hours, and the School-to-Work Transition: The Consequences of Leaving School in a Recession for Less-Educated Men

Jamin D. Speer
  • Corresponding author
  • Department of Economics, Fogelman College of Business and Economics, University of Memphis, 3675 Central Avenue, Memphis, Tennessee 38152, USA
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Published Online: 2015-09-10 | DOI: https://doi.org/10.1515/bejeap-2015-0054

Abstract

Using the NLSY’s weekly work history data to precisely measure labor market outcomes and the school-to-work transition, I document severe but short-lived effects of leaving school in a recession for men with 9–12 years of education. I find significant effects of entry labor market conditions on wages, job quality, and the transition time from school to work. In contrast to published evidence on more educated workers, I also find large effects on work hours on both the extensive and the intensive margins. When workers leave high school in a recession, they take substantially longer to find a job, earn lower wages, and work fewer full-time weeks and more part-time weeks. A 4-point rise in the initial unemployment rate leads to an increase in the school-to-work transition time of 9 weeks, a 16% decline in year-one average wage, a 28% fall in hours worked in the first year, and a 45% decline in first-year earnings. However, effects of entry conditions are not persistent and are largely gone after the first year.

Keywords: labor market conditions; recessions; labor supply; school-to-work transition

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About the article

Published Online: 2015-09-10

Published in Print: 2016-01-01


Citation Information: The B.E. Journal of Economic Analysis & Policy, Volume 16, Issue 1, Pages 97–124, ISSN (Online) 1935-1682, ISSN (Print) 2194-6108, DOI: https://doi.org/10.1515/bejeap-2015-0054.

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