Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110144
Authors: 
Cockx, Bart
Ghirelli, Corinna
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 8889
Abstract: 
We study the impact of graduating in a recession in Flanders (Belgium), i.e. in a rigid labor market. In the presence of a high minimum wage, a typical recession hardly influences the hourly wage of low educated men, but reduces working time and earnings by about 4.5% up to twelve years after graduation. For the high educated, the working time is not persistently affected, but the penalty on the hourly wage (and earnings) increases with experience, and attains roughly -6% ten years after labor market entry. We also contribute to the literature on inference with few clusters.
Subjects: 
scars
graduating
labor market rigidity
recession
few clusters
cluster robust
JEL: 
C12
C41
E32
I21
J22
J23
J31
J6
Document Type: 
Working Paper

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