Journal article
Family Resources and Human Capital in the Great Recession
Journal of labor economics
08/06/2025
DOI: 10.1086/737994
Abstract
I study how the Great Recession impacted the human capital of young adults. Using a novel dataset from U.S. Census, I document that the negative effects of worse local economic shocks on educational attainment are concentrated among middle-class children. I then develop a model of selection into college and life-cycle earnings. Simulating a recession in the model produces a “hollowing out the middle” in lifecycle earnings. An expansion to financial aid that insures against parental wealth shocks can mitigate these effects while being approximately revenue-neutral, and the presence of a recession makes progressive financial aid policy more cost-effective in general.
Details
- Title: Subtitle
- Family Resources and Human Capital in the Great Recession
- Creators
- Garrett Anstreicher
- Resource Type
- Journal article
- Publication Details
- Journal of labor economics
- DOI
- 10.1086/737994
- ISSN
- 0734-306X
- eISSN
- 1537-5307
- Publisher
- University of Chicago Press
- Language
- English
- Electronic publication date
- 08/06/2025
- Academic Unit
- Economics
- Record Identifier
- 9985217011802771
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