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Ability Matters: Effects of Youth Labor‐Market Opportunities on Long‐Term Labor‐Market Outcomes
Author(s) -
Haaland Venke Furre
Publication year - 2018
Publication title -
the scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/sjoe.12248
Subject(s) - earnings , norwegian , economics , labour economics , graduation (instrument) , differential (mechanical device) , term (time) , population , national longitudinal surveys , demographic economics , medicine , finance , linguistics , philosophy , physics , geometry , mathematics , environmental health , quantum mechanics , engineering , aerospace engineering
Utilizing registry data from cognitive ability tests for all Norwegian males born between 1962 and 1973, I study whether labor‐market conditions at the age of graduation have differential effects on earnings and employment for different ability groups. I find that low‐ability males are more vulnerable to local business cycles at the expected time of labor‐market entry. In particular, I demonstrate that low‐ability males suffer larger long‐term earnings losses than the rest of the population.