TAILIEUCHUNG - The Long-Term Labor Market Consequences of Graduating

The Elon University School of Law opened in downtown Greensboro, North Carolina, in fall 2006 with a charter class of 100 students. The school builds on Elon University’s national reputation for excellence in engaged learning and leadership education. It provides experiential opportunities for law students in a learning laboratory environment, with direct access to the region’s major courts, law firms and government and nonprofit agencies. Elon law students acquire excellent knowledge of the law. They develop broad lawyering skills and learn how to listen, communicate, interact effectively and resolve conflict in the broad range of complex situations lawyers confront. They. | The Long-Term Labor Market Consequences of Graduating from College in a Bad Economy Lisa B. Kahn Yale School of Management First Draft March 2003 Current Draft August 13 2009 Abstract This paper studies the labor market experiences of white male college graduates as a function of economic conditions at time of college graduation. I use the National Longitudinal Survey of Youth whose respondents graduated from college between 1979 and 1989. I estimate the effects of both national and state economic conditions at time of college graduation on labor market outcomes for the first two decades of a career. Because timing and location of college graduation could potentially be affected by economic conditions I also instrument for the college unemployment rate using year of birth state of residence at an early age for the state analysis . I find large negative wage effects to graduating in a worse economy which persist for the entire period studied. I also find that cohorts who graduate in worse national economies are in lower level occupations have slightly higher tenure and higher educational attainment I am grateful for helpful comments from George Baker Dan Benjamin James Heckman Caroline Hoxby Larry Katz Kevin Lang Fabian Lange Steve Levitt Derek Neal Chris Nosko Emily Oster Yona Rubenstein Hugo Sonnenschein Mike Waldman and seminar participants at Harvard University the University of Chicago Yale University and the Midwest Economic Association 2003 annual meetings. email while labor supply is unaffected. Taken as a whole the results suggest that the labor market consequences of graduating from college in a bad economy are large negative and persistent. 2 1 Introduction The immediate disadvantage of graduating from college in a poor economy is apparent. Even among employed persons those who graduate in bad economies may suffer from underemployment and are more likely to experience job mismatching since they have fewer jobs from which to choose. What

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