Dear colleagues,

we hereby invite you the next INEQ - Economics of Inequality Research Seminar.

Edvin Hertegård (SOFI, Stockholm University) will present his paper

Economic Crisis and the Career Choices of the Next Generation of Workers on

Monday, December 18, 3.00 p.m. at the INEQ Institute (D3.0.259, WU Vienna University of Economics and Business).

Abstract This paper studies how young individuals adjust to economic crisis by changing their career choices, and how this response affects their long-run labor market outcomes. The context is the massive recession that hit Sweden in the construction sectors. Our analysis shows that students who experience paternal job loss in the exposed sectors right before, as opposed to right after, the year they make their high-school specialization choices increasingly select into programs linked to less exposed sectors. They also achieve better labor market outcomes in the very long run, such as higher employment rates and career earnings. In contrast, students are less responsive to aggregate conditions in their local labor market. Our results are consistent with informational frictions being a key obstacle to structural adjustments.

Link to paper.

Please register your participation here.

Best regards,

Franziska Disslbacher and Emanuel List

Research Institute Economics of Inequality