Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216321 
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13009
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This study investigates the long-term effects of initial labor market conditions by comparing cohorts who graduated from college before, during, and after the 1997–1998 Asian financial crisis in South Korea. We measure the overall welfare effect by examining their labor market activities, family formation, and household finances. Using data from 20 waves of the Korean Labor and Income Panel Study, we find a substantial and persistent reduction in employment, earnings, marriage, fertility, and asset building among men who graduated during a recession. For women, limited job opportunities at graduation result in an increase in childbearing. Our results suggest that labor market entry in a large-scale recession has prolonged effects on a young worker's life course even after the penalties in the labor market have disappeared.
Subjects: 
recession
financial crisis
long-term effects
college graduates
JEL: 
E32
J10
E21
J20
J31
Document Type: 
Working Paper

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