Good skills in bad times: Cyclical skill mismatch and the long-term effects of graduating in a recession

We show that cyclical skill mismatch, defined as mismatch between the skills supplied by college graduates and skills demanded by hiring industries, is an important mechanism behind persistent career loss from graduating in recessions. Using Norwegian data, we find a strong countercyclical pattern of skill mismatch among college graduates. Initial labor market conditions have a declining but persistent effect on match quality and skill mismatch early in their careers. Match quality of the first employment may explain up to half of the short-term and most of the long-term earnings loss from graduating in a recession.We thank the editor and two anonymous referees for their constructive suggestions, and also Bart Cockx, Peter Gottschalk, Robert Moffitt, and the participants at several seminars and conferences for helpful comments and discussions. Sørensen acknowledges support from ESOP, Department of Economics, University of Oslo. This research is supported by the Research Council of Norway Grant 202445.This is the author accepted manuscript. The final version is available from Elsevier via http://dx.doi.org/10.1016/j.euroecorev.2015.08.01

Intergenerational Mobility and the Timing of Parental Income

We extend the standard intergenerational mobility literature by examining the relationship between adult outcomes of children and the timing of parental income during their childhood years, using data from Norway. We find first that, conditional on permanent household income, the child’s human capital is higher in households where income is balanced between the early childhood and late childhood years than in households with a more imbalanced income profile. Second, compared to that in the early and late periods of childhood, income in the middle period has relatively low productivity

Fluidez en el mercado laboral: Colombia vs. Estados Unidos

Este producto forma parte de una serie de infografías de divulgación científica que buscan reseñar algunas de las investigaciones más importantes en las que ha tenido participación la Universidad EAFIT, publicadas en las revistas especializadas más prestigiosas del mund

Markup cyclicality and input factor adjustments

Markups, Business cycles, Panel data, Adjustment costs, E32, D92,