-
Long-Term Effects of a Recession at Labor Market Entry in Japan and the United States
- Journal of Human Resources
- University of Wisconsin Press
- Volume 45, Number 1, Winter 2010
- pp. 157-196
- 10.1353/jhr.2010.0005
- Article
- Additional Information
We examine effects of entering the labor market during a recession on subsequent employment and earnings for Japanese and American men, using comparable household labor force surveys. We find persistent negative effects of the unemployment rate at graduation for less-educated Japanese men, in contrast to temporary effects for less-educated American men. The school-based hiring system and the dismissal regulation prolong the initial loss of employment opportunities for less-educated Japanese men. The effect on earnings for more-educated groups is also stronger in Japan, although the difference between the two countries is smaller than for less-educated groups.