The Great Recession and Young Adults' Labor Market Outcomes around the World

Author(s):  
Arnaldo Mont'Alvao ◽  
Monica K. Johnson
ILR Review ◽  
2017 ◽  
Vol 71 (5) ◽  
pp. 1154-1178 ◽  
Author(s):  
Bradley Heim ◽  
Ithai Lurie ◽  
Kosali Simon

Using a data set of US tax records spanning 2008 to 2013, the authors study the impact of the Affordable Care Act (ACA) young adult dependent coverage requirement on labor market–related outcomes, including measures of employment status, job characteristics, and postsecondary education. They find that the ACA provision did not result in substantial changes in labor market outcomes. Results show that employment and self-employment are not statistically significantly affected. Although some evidence supports the increased likelihood of young adults earning lower wages, not receiving fringe benefits, enrolling as full-time or graduate students, and young men being self-employed, the magnitudes imply extremely small impacts on these outcomes in absolute terms and when compared to other estimates in the literature. The authors find these results to be consistent with health insurance being less salient to young adults, compared to other populations, when making labor market decisions.


2015 ◽  
Vol 15 (3) ◽  
pp. 1297-1324 ◽  
Author(s):  
Ceren Ertan Yörük

Abstract This paper uses a regression discontinuity design to estimate the impact of the minimum legal drinking age (MLDA) laws on alcohol consumption and labor market outcomes of young adults. Using confidential data from the National Longitudinal Survey of Youth 1997 Cohort (NLSY97), I find that granting legal access to alcohol at age 21 leads to an increase in several measures of alcohol consumption. The discrete jump in the alcohol consumption at the MLDA has also negative spillover effects on the labor market outcomes of young adults. In particular, I document that the MLDA is associated with a 1 hour decrease in weekly working hours. However, the effect of the MLDA laws on wages is negative only under certain specifications. These results suggest that the policies designed to curb drinking may not only have desirable effects in reducing alcohol consumption among young adults but also have positive spillover effects on their labor market outcomes.


Author(s):  
David J. Harding ◽  
Anh P. Nguyen ◽  
Jeffrey D. Morenoff ◽  
Shawn D. Bushway

This chapter examines the effect of imprisonment on labor-market outcomes for young adults. The life-course framework suggests that imprisonment may be particularly consequential for young people making the transition to adulthood. It emphasizes the sequential connections between critical life events and the role of early events in establishing trajectories of advantage or disadvantage over the life course. Drawing on data on young adults sentenced for felonies between 2003 and 2006 in Michigan and leveraging a natural experiment based on the random assignment of judges, this chapter estimates the effect of imprisonment versus probation on various employment outcomes. Imprisonment has substantively large negative effects on employment. Effects are largest 1 year after sentencing, when incapacitation removes most prisoners from the labor market, but persist to the 5-year point. Effects are also larger for whites than nonwhites, reflecting low employment among nonwhites in the comparison group.


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