TY  - RPRT
        AU  - Mahajan, Parag
AU  - Patki, Dhiren
AU  - Stüber, Heiko
        TI  - Bad Times, Bad Jobs? How Recessions Affect Early Career Trajectories
        PY  - 2024/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16898
        UR  - https://www.iza.org/publications/dp16898
        AB  - Workers who enter the labor market during recessions experience lasting earnings losses, but the role of non-pay amenities in exacerbating or counteracting these losses remains unknown. Using population-scale data from Germany, we find that labor market entry during recessions generates a 5 percent reduction in earnings cumulated over the first decade of experience. Implementing a revealed-preference estimator of employer quality that aggregates information from the universe of worker moves across employers, we find that 17 percent of recession-induced earnings losses are compensated by non-pay amenities. Purely pecuniary estimates can therefore overstate the welfare costs of labor market entry during recessions.
        KW  - earnings inequality
KW  - recessions
KW  - non-pay amenities
        ER  -