Publication Date



Upjohn Institute working paper ; 19-312




This paper investigates the long-term effects of initial labor market conditions by comparing cohorts who graduated from college before, during, and after the 1997–1998 Asian financial crisis. We measure the overall welfare impact by examining not only labor market activities but also family formation and wealth accumulation. Using data from 20 waves of the Korean Labor and Income Panel Study, we find a substantial and persistent reduction in employment, earnings, marriage, fertility, and financial assets among men who graduated in a bad economy. For women, limited job opportunities at graduation result in an increase in childbearing.

Issue Date

August 2019


W.E. Upjohn Institute for Employment Research, Early Career Research Award 17-155-04

Subject Areas

LABOR MARKET ISSUES; Job security and unemployment dynamics


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Choi, Eleanor Jawon, Jaewoo Choi, Hyelim Son. 2019. "The Long-Term Effects of Labor Market Entry in a Recession: Evidence from the Asian Financial Crisis." Upjohn Institute Working Paper 19-312. Kalamazoo, MI: W. E. Upjohn Institute for Employment Research.