Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/202772 
Authors: 
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12426
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
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.
Subjects: 
human capital
education
income
recessions
JEL: 
E32
I20
I30
J13
J24
Document Type: 
Working Paper

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