The Evolution of Local Labor Markets after Recessions
Stuart, Bryan A. 2024 Hershbein, Brad
The Evolution of Local Labor Markets after Recessions - American Economic Journal: Applied Economics 2024 - 399-435
This paper studies how US local labor markets respond to employment losses that occur during recessions. Following recessions from 1973 through 2009, we find areas that lose more jobs during the recession experience persistent relative declines in employment and population. Most importantly, these local labor markets also experience persistent decreases in the employment-population ratio, earnings per capita, and earnings per worker. Our results imply that limited population responses result in longer-lasting consequences for local labor markets than previously thought and that recessions are followed by persistent reallocation of employment across space.
1945-7782
Business Fluctuations
Cycles, Labor Force and Employment, Size, and Structure, Wage Level and Structure
Immigrant Workers, Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration
Neighborhood Characteristics
Regional Labor Markets
Population
The Evolution of Local Labor Markets after Recessions - American Economic Journal: Applied Economics 2024 - 399-435
This paper studies how US local labor markets respond to employment losses that occur during recessions. Following recessions from 1973 through 2009, we find areas that lose more jobs during the recession experience persistent relative declines in employment and population. Most importantly, these local labor markets also experience persistent decreases in the employment-population ratio, earnings per capita, and earnings per worker. Our results imply that limited population responses result in longer-lasting consequences for local labor markets than previously thought and that recessions are followed by persistent reallocation of employment across space.
1945-7782
Business Fluctuations
Cycles, Labor Force and Employment, Size, and Structure, Wage Level and Structure
Immigrant Workers, Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration
Neighborhood Characteristics
Regional Labor Markets
Population