Browsing by Author "Lopes, Catarina Inês Claro"
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- The persistent effects of entering the labour market in a recession : evidence from PortugalPublication . Lopes, Catarina Inês Claro; Silva, JoanaThis paper examines the effects of entering the labor market during a recession on subsequent labor market outcomes. Using longitudinal matched employer-employee data from Portugal for the period 2002-2017, this paper estimates the impacts of the unemployment rate at the time of labour market entry on subsequent earnings of university graduates. Using a fixed effects model controlling for potential experience, regional and labour market entry-year, it finds that university students that graduated during the Great Recession of 2008-2012 were negatively affected by the initial conditions even after these conditions have subsided. The so-called “unlucky” cohort, that graduated between 2008 and 2012, has a penalty on the initial level of annual earnings of around 8 percent. This penalty fades over time but is still present in 2017. The effect on initial earnings is stronger and more prolonged among women than men, suggesting that recessions can be a potential source of gender wage inequality in Portugal. The results presented are supportive of persistent, and, large negative impacts on youth of the Great Recession of 2008-2012 in Portugal.