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Effect of Recession on Labor Market Outcomes of College Graduates in the Czech Republic
 Pavlova, Margarita ; Jurajda, Štěpán (advisor) ; Pytliková, Mariola (referee)
Title: Effect of Recession on Labor Market Outcomes of College Graduates in the Czech Republic Author: Margarita Pavlova Abstract: This paper examines the effect of graduating from college during a re- cession on labor market outcomes in the Czech Republic, where tertiary education is mostly state-funded. I focus on workers who entered the labor market during 2006-2015, a period including the financial crisis and recession of 2008 and the subsequent recovery period. As an indicator of economic conditions, I use overall and youth unemployment rates. I find that an increase in the unemployment rate by 4 percentage points is associated with approximately a 8% reduction of annual earnings in the first year after graduation. Additionally, I study two channels of earnings' reduction: the probability of being employed and probability of being employed in a "college" occupation after graduation. Both probabilities diminish significantly with an increase in unemployment rates. Overall, my results demon- strate that graduation at the time of recession has a significant negative impact on labor market outcomes of workers. Keywords: Business Cycle, College Graduates, Cohort Effects
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1 Pavlová, Miroslava
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