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The Perfect Storm: Graduating during a Recession in a Segmented Labor Market

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dc.contributor.authorFernández Kranz, Daniel
dc.contributor.authorRodríguez Planas, Núria
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2025-01-29T16:36:10Z
dc.date.available2025-01-29T16:36:10Z
dc.date.issued2017-06-09
dc.description.abstractUsing Spanish Social Security data merged with Labor Force Survey data, this article analyzes the effects of entry labor market conditions on workers’ careers two to three decades after graduating in Spain, a country well known for its highly segmented labor market and rigid labor market institutions. In contrast to more flexible labor markets such as in the United States or Canada, the authors find that following a recession the annual earnings losses of individuals without a university degree are greater and more persistent than those of college graduates. For workers without a college degree, the effect is driven by a lower likelihood of employment. For college graduates, the negative impact on earnings is driven by both a higher probability of non-employment and employment in jobs with fixed-term contracts. Although a negative shock increases mobility of college graduates across firms and industries, no earnings recovery occurs for the individual, just secondary labor market job churning. Results are consistent with the tight regulations of the Spanish labor market, such as binding minimum wages and downward wage rigidity caused by collective bargaining agreements.
dc.description.peerreviewedyes
dc.description.statusPublished
dc.identifier.citationFernández-Kranz, D., & Rodríguez-Planas, N. (2018). The perfect storm: Graduating during a recession in a segmented labor market. ILR Review, 71(2), 492-524. https://doi.org/10.1177/0019793917714205
dc.identifier.doihttps://doi.org/10.1177/0019793917714205
dc.identifier.issn0019-7939
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3504
dc.issue.number2
dc.journal.titleILR Review
dc.language.isoen
dc.page.final524
dc.page.initial492
dc.page.total33
dc.publisherSage
dc.relation.departmentEconomics
dc.relation.entityIE University
dc.relation.schoolIE Business School
dc.rightsmetadata access only
dc.rights.accessRightsinfo:eu-repo/semantics/restrictedAccess
dc.titleThe Perfect Storm: Graduating during a Recession in a Segmented Labor Market
dc.typeinfo:eu-repo/semantics/article
dc.volume.number71
dspace.entity.typePublication
relation.isAuthorOfPublicationad6e9507-ead9-4420-bd46-155a196375b0
relation.isAuthorOfPublication.latestForDiscoveryad6e9507-ead9-4420-bd46-155a196375b0
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