Youth Hiring and Labor Market Tightness
AbstractIt is well-known that recessions can lead to long-term scarring for young workers. I show that employers hire fewer young workers when there are few job openings per unemployed job seeker, while hiring rates for workers with more than 10 years of potential experience are much less cyclically volatile. During the COVID-19 pandemic, youth employment rates rebounded particularly quickly compared with other groups and historic patterns. I show this is consistent with the historic relationship between tightness and youth hiring rates, suggesting youth scarring from the COVID-19 pandemic may be less severe compared with previous recessions.
CitationForsythe, Eliza C. 2022. "Youth Hiring and Labor Market Tightness." AEA Papers and Proceedings, 112: 117-20. DOI: 10.1257/pandp.20221032
- E32 Business Fluctuations; Cycles
- I12 Health Behavior
- J13 Fertility; Family Planning; Child Care; Children; Youth
- J23 Labor Demand