Born in 1988? Sorry.
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BORN IN 1988? SORRY. By Peter Orszag SORRY. 1988? BORN IN Based on a Peter Orszag Article on Bloomberg View
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Transcript of Born in 1988? Sorry.
BORN IN 1988? SORRY.
By Peter Orszag
SORRY.1988?BORN IN
Based on a Peter Orszag Article on Bloomberg View
IT’S BAD LUCK TO BE BORN
20 YEARS BEFORE A TIME OF HIGH UNEMPLOYMENT
IT’S BAD LUCK TO BE BORN
20 YEARS BEFORE A TIME OF HIGH UNEMPLOYMENT
IT CAN… affect your income as you enter the workforce (naturally)
IT’S BAD LUCK TO BE BORN
20 YEARS BEFORE A TIME OF HIGH UNEMPLOYMENT
IT CAN… affect your income as you enter the workforce (naturally)
keep earnings relatively low
IT CAN… affect your income as you enter the workforce (naturally)
keep earnings relatively low
chip away at health & happiness …for a lifetime
IT’S BAD LUCK TO BE BORN
20 YEARS BEFORE A TIME OF HIGH UNEMPLOYMENT
WHEN YOU
ENTER THE WORKFORCE
A 1% RISE IN THE UNEMPLOYMENT RATE…
…REDUCES YOUR WAGES BY 6% - 7%
AND THE REDUCTION
PERSISTS (THOUGH IT DIMINISHES SOMEWHAT OVER TIME)
A 1% RISE IN THE UNEMPLOYMENT RATE AT GRADUATION…
…REDUCES YOUR WAGES BY 2.5%
15 YEARS LATER
THIS CAN MAKE A
BIG DIFFERENCE FOR MEMBERS OF THE SAME GENERATION
BORN JUST A FEW YEARS APART
THIS CAN MAKE A
BIG DIFFERENCE FOR MEMBERS OF THE SAME GENERATION
BORN JUST A FEW YEARS APART
Consider a person born in 1988 !
THIS CAN MAKE A
BIG DIFFERENCE FOR MEMBERS OF THE SAME GENERATION
BORN JUST A FEW YEARS APART
Consider a person born in 1988 who graduated in 2010
when there was 9.6% unemployment…
THIS CAN MAKE A
BIG DIFFERENCE FOR MEMBERS OF THE SAME GENERATION
BORN JUST A FEW YEARS APART
Consider a person born in 1988 who graduated in 2010
when there was 9.6% unemployment…
…with someone born in 1984 !
THIS CAN MAKE A
BIG DIFFERENCE FOR MEMBERS OF THE SAME GENERATION
BORN JUST A FEW YEARS APART
Consider a person born in 1988 who graduated in 2010
when there was 9.6% unemployment…
…with someone born in 1984 who graduated in 2006
when there was 4.5% unemployment
THIS CAN MAKE A
BIG DIFFERENCE FOR MEMBERS OF THE SAME GENERATION
BORN JUST A FEW YEARS APART
The person born in 1988 is unlucky with 30% - 35% lower wage at graduation
THIS CAN MAKE A
BIG DIFFERENCE FOR MEMBERS OF THE SAME GENERATION
BORN JUST A FEW YEARS APART
The person born in 1988 is unlucky with 30% - 35% lower wage at graduation
After 15 years the person born in 1984 is expected to earn roughly 13% more
Similarly, the class of 1982 (a peak unemployment year)
earned $100k less over 20 years
THIS CAN MAKE A
BIG DIFFERENCE FOR MEMBERS OF THE SAME GENERATION
BORN JUST A FEW YEARS APART
THIS CAN MAKE A
BIG DIFFERENCE FOR MEMBERS OF THE SAME GENERATION
BORN JUST A FEW YEARS APART
Similarly, the class of 1982 (a peak unemployment year)
earned $100k less over 20 years
…than did similar students in the class of 1988,
(a peak employment year)
SINCE THE BUSINESS CYCLE WILL NEVER BE ELIMINATED
WHAT CAN YOU DO TO PROTECT YOURSELVES AND YOUR CHILDREN?
SINCE THE BUSINESS CYCLE WILL NEVER BE ELIMINATED
WHAT CAN YOU DO TO PROTECT YOURSELVES AND YOUR CHILDREN?
BE LUCKY: Be born 20 years before an economic boom (rather than a bust)
SINCE THE BUSINESS CYCLE WILL NEVER BE ELIMINATED
WHAT CAN YOU DO TO PROTECT YOURSELVES AND YOUR CHILDREN?
BE LUCKY: Be born 20 years before an economic boom (rather than a bust)
SINCE THE BUSINESS CYCLE WILL NEVER BE ELIMINATED
WHAT CAN YOU DO TO PROTECT YOURSELVES AND YOUR CHILDREN?
PURSUE EDUCATION: It tends to protects you from the lasting effects of elevated unemployment
SORRY.Based on a Peter Orszag Article on Bloomberg View
1988?BORN IN
