The Long-Run Effects of Recessions on Education and Income

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 12426

Classification and Topics

• Classification: Wirtschaft ; Business Fluctuations; Cycles ; Education and Research Institutions: General ; Welfare, Well-Being, and Poverty: General ; Fertility; Family Planning; Child Care; Children; Youth ; Human Capital; Skills; Occupational Choice; Labor Productivity
• Subject: human capital ; education ; income ; recessions

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stuart, Bryan
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2019

Further information

• Handle: http://hdl.handle.net/10419/202772
• Last update: 10.03.2025, 11:43 AM CET