Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/62374
Authors: 
Liu, Kai
Salvanes, Kjell G.
Sørensen, Erik Ø.
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6820
Abstract: 
We show that cyclical skill mismatch, defined as mismatch between the skills supplied by college graduates and skills demanded by hiring industries, is an important mechanism behind persistent career loss from graduating in recessions. Using Norwegian data, we find a strong countercyclical pattern of skill mismatch among college graduates. Initial labor market conditions have a declining but persistent effect on the probability of mismatch early in their careers. We provide a simple model of industry mobility that is consistent with our empirical findings. The initially mismatched graduates are also more vulnerable to business cycle variations at the time of graduation.
Subjects: 
mismatch
business cycle
graduation
JEL: 
E32
J31
J62
Document Type: 
Working Paper

Files in This Item:
File
Size
327.62 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.