Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/339012 
Year of Publication: 
2025
Series/Report no.: 
Working Paper No. 2025:20
Publisher: 
Institute for Evaluation of Labour Market and Education Policy (IFAU), Uppsala
Abstract: 
We study how students adjust their early career choices in response to economic crises and how these decisions affect their long-run labor market outcomes. Focusing on Sweden's deep recession in the early 1990s - which hit the manufacturing and construction sectors hardest - we first show that students whose fathers lost jobs in these sectors were more likely to choose career paths tied to less-affected industries. These students later experienced better labor market outcomes, including higher employment and earnings. Our findings suggest that informational frictions are a key obstacle to structural change and identify career choice as an important channel through which recessions reshape labor markets in the long run.
Subjects: 
High School Major
Recession
Information Frictions
Structural Change
JEL: 
I25
J24
J63
E32
Document Type: 
Working Paper

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