Abstract
We examine effects of entering the labor market during a recession on subsequent employment and earnings for Japanese and American men, using comparable household labor force surveys. We find persistent negative effects of the unemployment rate at graduation for less-educated Japanese men, in contrast to temporary effects for less-educated American men. The school-based hiring system and the dismissal regulation prolong the initial loss of employment opportunities for less-educated Japanese men. The effect on earnings for more-educated groups is also stronger in Japan, although the difference between the two countries is smaller than for less-educated groups.
- Received September 2007.
- Accepted October 2008.
This article requires a subscription to view the full text. If you have a subscription you may use the login form below to view the article. Access to this article can also be purchased.
Log in using your username and password
Purchase access
In this issue
Jump to section
- Article
- Abstract
- I. Introduction
- II. Institutional Background
- III. Underlying Mechanisms
- IV. Data and Methodology
- V. Estimated Effects of a Recession at Entry
- VI. Concluding Remarks
- Appendix 1 Earnings Data
- Appendix 2 Measurement Errors Caused by Migration across Regions and Skipped/Repeated Grades
- Appendix 3 Business Cycles and Schooling Choice
- Appendix 4 Sensitivity Check
- Appendix 5 Controlling for Industries
- Footnotes
- References
- Figures & Data
- Info & Metrics
- References