The Economic Disappointment of Generation O!
This is Generation O: the age cohort that contributed, registered, volunteered and voted for Barack Obama with greater intensity than we have seen since at least the 1960 presidential election. Since then, the effect of President Obama's failed economic policies has fallen most disproportionately on them.
The unemployment rates among Generation O not only suggest personal disappointment, but also large and lasting implications for them and for society.
A paper forthcoming in the American Economic Journal Applied Economics found that graduating in a recession leads to earnings losses that last for 10 years after graduation.
The authors, University of Toronto economics professor Philip Oreopoulos, Columbia University professor Till von Wachter, and economist Andrew Heisz of Statistics Canada, found that earnings losses are greater for new entrants to the labor force than for existing workers, who might see smaller raises, but who have jobs. In addition, recessions lead workers to accept employment in small firms that pay lower salaries.
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