TY  - RPRT
        AU  - Cockx, Bart
AU  - Ghirelli, Corinna
        TI  - Scars of Recessions in a Rigid Labor Market
        PY  - 2015/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8889
        UR  - https://www.iza.org/publications/dp8889
        AB  - We study the impact of graduating in a recession in Flanders (Belgium), i.e. in a rigid labor market. In the presence of a high minimum wage, a typical recession hardly influences the hourly wage of low educated men, but reduces working time and earnings by about 4.5% up to twelve years after graduation. For the high educated, the working time is not persistently affected, but the penalty on the hourly wage (and earnings) increases with experience, and attains roughly -6% ten years after labor market entry. We also contribute to the literature on inference with few clusters.
        KW  - cluster robust
KW  - graduating
KW  - labor market rigidity
KW  - recession
KW  - scars
KW  - few clusters
        ER  -