Template-Type: ReDIF-Paper 1.0
Author-Name: Matti Hovi
Author-Name-First: Matti
Author-Name-Last: Hovi
Author-Email: matti.hovi@tuni.fi
Author-Workplace-Name: Tampere University and Finnish Center of Excellence in Tax Systems Research FIT
Author-Name: Sami Remes
Author-Name-First: Sami
Author-Name-Last: Remes
Author-Email: sami.remes@tuni.fi
Author-Workplace-Name: Tampere University and Finnish Center of Excellence in Tax Systems Research FIT
Title: Unlucky Labor Market Entry and Resilience in Subsequent Shocks
Abstract: This study investigates how labor market conditions at graduation affect individual’s labor market outcomes when facing employment shocks in later career, specifcally due to plant closures. We focus on university graduates and vocational school graduates as two distinct groups. Our findings reveal that the long-term earnings loss following a plant closure is 175% higher for those university graduates who entered the labor market during periods of high regional unemployment. Additionally, these unlucky university graduates are more likely to work in lower quality firms. Among vocational school graduates, we do not find a similar additional negative effect on earnings or employment quality for unlucky graduates. Instead, our results suggest higher labor market activity compared to the luckiest graduates. 
Length: 83
Creation-Date: 2024-08
Publication-Status: Published in FIT Working Paper Series, Finnish Center of Excellence in Tax Systems Research
File-URL: https://verotutkimus.fi/verotutkimus/wp-content/uploads/2024/08/FIT-WP-24-Unlucky-labour-market-entry-and-resilience-in-subsequent-shocks-1.pdf
File-Format: Application/pdf
File-Function: First version, 2024
Number: 24
Classification-JEL: J21 , J24 , J65 , E32 
Keywords: Displacement, Plant closure, Business cycle, Recession, Graduation 
Handle: RePEc:fit:wpaper:24