Does Early Career Unemployment at the Peak of a Recession Leave Economic Scars? Evidence from Estonia

2020 ◽  
Vol 688 (1) ◽  
pp. 246-257 ◽  
Author(s):  
Marge Unt ◽  
Kadri Täht
Keyword(s):  
Economic Crisis ◽  
Great Recession ◽  
Early Career ◽  
Main Mechanism ◽  
Economic Downturn ◽  
Income Loss ◽  
The Great Recession ◽  
Poverty Risk ◽  
Lower Productivity ◽  
Lifetime Earnings

On average, individuals who have experienced unemployment are disadvantaged in terms of later lifetime earnings. Those who graduated from school during the Great Recession are especially prone to have experienced bouts of unemployment, but we know little about how much they suffer in later career earnings. Estonia was heavily hit by the economic crisis but recovered relatively quickly. This study explores poverty and earnings effects for a cohort of recession graduates in Estonia, finding that early career unemployment is not a direct trigger for poverty risk and income loss five years later. The main mechanism for disadvantage among recession graduates is recurring unemployment, meaning that the scars of initial unemployment are avoided only if graduates succeed in avoiding unemployment later. Findings also indicate that during an economic downturn, employers may not regard unemployment as a signal of lower productivity or depreciation of skills.

scholarly journals Social origins and the decision to leave university during the Great recession: the role of the field of study

2020 ◽  
Author(s):  
Loris Vergolini ◽  
Eleonora Vlach
Keyword(s):  
University Students ◽  
Economic Crisis ◽  
Great Recession ◽  
Social Inequalities ◽  
Drop Out ◽  
Economic Downturn ◽  
Long Term Effects ◽  
Field Of Study ◽  
The Great Recession ◽  
Drop Out Rate

The recent economic downturn has had profound influences on contemporary European societies. This paper analyzes how the Great Recession affected the drop-out rate among university students in Italy, and whether their chosen field of study moderated its effect. To examine the potential long-term effects of this economic downturn on social inequality, we also explore whether students from less-advantaged families who enrolled in prestigious fields were those pushed out from university in disproportionally high numbers. We investigate the interacting influence of the economic crisis, social inequalities and field of study on drop-out rate using data from the Istat “Survey on the educational and occupational paths of high school graduates” in two cohorts of university students (one who attended university prior to and one during the Great Recession). Results obtained from propensity score matching show that the economic crisis had a negative effect on university participation, which was however less strong for Medicine students. Students from lower socio-economic backgrounds in the most remunerative fields of study (those leading to liberal professions), tended to leave university more often than their well-off peers.

scholarly journals A fuzzy set approach to economic crisis, austerity and public health. Part I. European countries’ conformity to ideal types during the economic downturn

2017 ◽  
Vol 45 (18_suppl) ◽  
pp. 41-47 ◽  
Author(s):  
Therese Saltkjel ◽  
Mari Holm Ingelsrud ◽  
Espen Dahl ◽  
Knut Halvorsen
Keyword(s):  
Economic Crisis ◽  
Fuzzy Set ◽  
Great Recession ◽  
European Countries ◽  
Economic Downturn ◽  
The European Union ◽  
Ideal Types ◽  
The Great Recession ◽  
Current Economic Crisis ◽  
Welfare Generosity

Aims: This is the first part of a two-part paper that takes an explorative approach to assess crisis and austerity in European countries during the Great Recession. The ultimate aim of this two-part paper is to explore the “crisis–austerity” thesis by Stuckler and Basu and assess whether it is the interplay between austerity and crisis, rather than the current economic crisis per se, that can led to deterioration in population health. In Part I of this paper we offer one way of operationalizing crisis severity and austerity. We examine countries as specific configurations of crisis and policy responses and classify European countries into “ideal types.” Methods: Cases included were 29 countries participating in the European Union Statistics on Income and Living Conditions (EU-SILC) surveys. Based on fuzzy set methodology, we constructed two fuzzy sets, “austerity” and “severe crisis.” Austerity was measured by changes in welfare generosity; severe crisis was measured by changes in gross domestic product (GDP) per capita growth. Results: In the initial phase of the Great Recession, most countries faced severe crisis combined with no austerity. From 2010–2011 onward, there was a divide between countries. Some countries consistently showed signs of austerity policies (with or without severe crisis); others consistently did not. Conclusions: The fuzzy set ideal-type analysis shows that the European countries position themselves, by and large, in configurations of crisis and austerity in meaningful ways that allow us to explore the “crisis–austerity” thesis by Stuckler and Basu. This exploration is the undertaking of Part II of this paper.

The Great Depression and the Great Recession in Interwar Greece and Today: A comparison

2015 ◽  
Vol 66 (2) ◽  
Author(s):  
Sophia Lazaretou
Keyword(s):  
Great Recession ◽  
Empirical Studies ◽  
Economic Downturn ◽  
The Great Recession ◽  
The Past ◽  
Greek Crisis ◽  
The Great Depression ◽  
Terra Incognita ◽  
Cross Country ◽  
Nominal Anchor

AbstractThe past Greek crisis experience is more or less terra incognita. In all historical empirical studies Greece is systematically neglected or included only sporadically in their cross-country samples. In the national literature too there is little on this topic. In this paper we use the 1930s crisis as a useful testing ground to compare the two crises episodes, ‘then’ and ‘now’; to detect differences and similarities and discuss the policy facts with the ultimate aim to draw some ‘policy lessons’ from history. To the best of our knowledge, this is the first attempt to study the Greek crisis experience across the two historical episodes. Comparisons with the interwar period show that the recent economic downturn was faster, larger and more severe than during the early 1930s. More importantly, analysing the determinants of the two crises, we conclude that Greece’s problems arose from its inability to credibly adhere to a nominal anchor.

Conclusion

2020 ◽  
pp. 258-274
Author(s):  
Elizabeth Hewitt
Keyword(s):  
Economic Crisis ◽  
Great Recession ◽  
First Century ◽  
National Commission ◽  
Narrative Form ◽  
Simple Explanation ◽  
Global Finance ◽  
Wall Street ◽  
The Great Recession ◽  
Hollywood Films

This chapter turns to the twenty-first century to study the implications of narrative form to the representation of contemporary fiscal catastrophe. It argues that the legacy of the narrative dispute between the Hamiltonians and Jeffersonians can be seen in contemporary explanations of the Great Recession, including the 2011 report generated by the National Commission on the Causes of the Financial and Economic Crisis and two Hollywood films, The Wolf of Wall Street and The Big Short. All three texts are shaped by both the imperative to represent the complexity of global finance and the impulse to offer a simple explanation.

Social class and mental health

2018 ◽  
pp. 159-172
Author(s):  
M. Harvey Brenner
Keyword(s):  
Mental Health ◽  
Social Class ◽  
Great Recession ◽  
Psychological Disorder ◽  
Mental Health Crisis ◽  
Economic Crises ◽  
Income Loss ◽  
Health Crisis ◽  
The Great Recession ◽  
The Great Depression

The Great Depression saw increasingly higher rates of mental disorder at successively lower social class levels. These findings have been repeated over the twentieth and twenty-first centuries. Dynamic interpretations of these relations have concentrated on vulnerability to economic crises, resulting in major increases in mental hospitalization and suicide. These studies have shown psychological morbidity and suicide to be strongly influenced by employment and income loss. Did the Great Recession re-enact the Great Depression’s mental health crisis for world societies? Recent literature shows substantially elevated psychological disorder in the Great Recession across industrialized societies. New multivariate analyses, using gross domestic product declines and unemployment increases as the main recessional indicators, find that world suicide and industrialized country overall mortality rates increased owing to the Great Recession and government austerity. A paradigm is presented of the circular relations linking economic crises, social class, and the interactive relations of mental and physical health.

Elusive equalities and the Great Recession: restoration, retrenchment and redistribution

2014 ◽  
Vol 10 (4) ◽  
pp. 427-441
Author(s):  
Janine Brodie
Keyword(s):  
Great Depression ◽  
Economic Crisis ◽  
Great Recession ◽  
First Century ◽  
The Great Recession ◽  
The Great Depression ◽  
Early Twenty ◽  
Twenty First Century ◽  
Crisis Responses

AbstractThe 2008 global financial meltdown, commonly called the ‘Great Recession’, was the most serious crisis in capitalism since the Great Depression of the 1930s, and a fundamental repudiation of neoliberal governing assumptions. This paper focuses on the contexts that informed two governmental responses to this economic crisis — restoration and retrenchment through public austerity. It explains that these responses were contingent, experimental, inequitable and, in the end, unsuccessful. Restoration and retrenchment, however, were entirely consistent with previous neoliberal crisis-responses and the abiding ambitions of this governing project. As the economic crisis crawled into the second half of a decade, the idea of inequality was increasingly identified as an underlying cause of crisis and its amelioration as a necessary part of rebuilding economies and communities in a post-crisis era. The paper tracks the case for the revival of equality politics and policies in the early twenty-first century.

Failing the Test? The Flexible U.S. Job Market in the Great Recession

2013 ◽  
Vol 650 (1) ◽  
pp. 78-97 ◽  
Author(s):  
Richard B. Freeman
Keyword(s):  
Great Recession ◽  
Full Employment ◽  
Economic Downturn ◽  
Job Market ◽  
The Great Recession ◽  
Duration Of Unemployment ◽  
Market Driven ◽  
Labor Institutions ◽  
The U.S ◽  
American Labor

The Great Recession tested the ability of the “great U.S. jobs machine” to limit the severity of unemployment in a major economic downturn and to restore full employment quickly afterward. In the crisis the American labor market failed to live up to expectations. The level and duration of unemployment increased substantially in the downturn, and the growth of jobs was slow and anemic in the recovery. This article documents these failures and their consequences for workers. The U.S. performance in the Great Recession contravenes conventional views of the virtues of market-driven flexibility compared to institution-driven labor adjustments and the notion that weak labor institutions and greater market flexibility offer the best road to economic success in a modern capitalist economy.

Less-Educated Workers in a Skills-Based Economy: Can the Gap be Bridged?

2012 ◽  
Vol 43 (3) ◽  
pp. 13-24
Author(s):  
A. Bentley Hankins
Keyword(s):  
Great Recession ◽  
Rehabilitation Counselors ◽  
Economic Downturn ◽  
Structural Factors ◽  
Functional Skills ◽  
Structural Unemployment ◽  
The Great Recession ◽  
Practice Recommendations ◽  
Successful Work ◽  
Policy Proposals

With our national discourse focused on the lingering joblessness caused by the Great Recession, there is much debate as to whether our economic recovery is being hindered by cyclical or structural unemployment. The general consensus is that cyclicalfactors are the primary determinants of our labor surplus. However, many are concerned that structural factors, such as skills mismatches, are also contributing to our stagnant economy. Either way, it appears that less-educated workers have been the hardest hit by our economic downturn. Though disconcerting, this is not surprising as less-educated workers often lack the adaptability necessary to make a successful work adjustment. In this article, the predicament less-educated workers are currently facing is examined from a person-environment correspondence perspective. The increased importance of possessing adaptive and functional skills in an unstable labor market is also discussed. Finally, policy proposals for rehabilitation leaders and practice recommendations for rehabilitation counselors are presented.

Factors Associated With Hiring and Firing Financial Advisors During the Great Recession

2019 ◽  
Vol 30 (2) ◽  
pp. 289-303
Author(s):  
Yuanshan Cheng ◽  
Charlene M. Kalenkoski ◽  
Philip Gibson
Keyword(s):  
Great Recession ◽  
Financial Services ◽  
Significant Loss ◽  
Economic Downturn ◽  
Financial Advisors ◽  
Net Worth ◽  
The Great Recession ◽  
Financial Advisor ◽  
Client Relationship ◽  
Hiring And Firing

From 2007 to 2009, the U.S. economy went through a deep economic downturn which is popularly known as the Great Recession. It resulted in a significant loss of wealth for many investors. While some investors sought the advice of financial advisors; others did not. This study examines the economic situation of households using the National Longitudinal Survey of Youth (NLSY) and analyzes the financial advisor–client relationship during the Great Recession to determine who fired or hired a financial advisor during this period. The results indicate that losing money, measured by a decrease net worth, was not the main reason why clients fired their financial advisor during the Great Recession. Interestingly, the results also show that experiencing a decrease in net worth was not the main reason why individuals pursued the services of a financial adviser during this period. Instead, current income and an increase in income were the primary factors that impacted the client–advisor relationship during the financial crisis. These results are consistent with consumer demand theory in which financial services are a normal good that people purchase less of when their income falls.

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