This paper provides empirical estimates on the labor market responses to a large number of recessions and crises, including estimates that use microdata to trace the propagation and incidence of such crises. Our results draw on two different data sets, each built from quarterly labor force surveys.
The distribution of the severity and duration of labor market downturns is strongly right skewed. The longest and most severe downturns are associated with crises, particularly financial crises, sudden stops, and house price busts. Manufacturing and construction are key sectors for propagation, as they account for more than half of the total decline in employment. Labor market downturns fall most on young and less-educated workers, who are less able to self-insure against idiosyncratic earnings risk.
Chosen excerpts by Job Market Monitor. Read the whole story @ Labor Market Anatomy of a Macroeconomic Crisis | NBER
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