The American Economic Association is featuring research on the lingering effects of recessions from the Upjohn Institute’s Brad Hershbein and Bryan Stuart of the Philadelphia Federal Reserve Bank. A write-up titled “The distributional consequences of recessions: How do local labor markets recover after economic shocks?” is currently displayed on the AEA homepage and will be sent out in the association’s monthly digest.
Hershbein and Stuart find that, for every recession, harder-hit metropolitan areas suffer long-lasting economic harm than do less-affected areas. The harder-hit areas fall behind in terms of employment, population, employment rates, and per capita earnings.
Their research is published as “Evolution of Local Labor Markets After Recession,” in the July issue of the American Economic Journal: Applied Economics.
Hershbein and Stuart also summarize their work in the Upjohn Institute policy brief, “The Enduring Local Harm from Recessions.”