Effects of graduating from college in a bad economy - Essay Example

Effects Of Graduating From College In A Bad Economy General Purpose: To inform Specific Purpose: Inform about the effects of graduation from college in a bad economy.OutlineIntroductionSeveral researches have been conducted on the effect of recession and bad economy on the employment status and employment structures of graduates. The immediate thought that comes to an individuals mind related to this topic is that if an individuals graduates during recession, he will experience difficulties in finding employment.

Finding show that in the long run there is no effect but in the short run, graduates experience consequences.Body Long RunFindings show that recession does not change the probability of getting employment or the number of hours an individual works in the long run as compared to the number of working hours and probability of gaining employment during good economic conditions in the long run (Liu 2). Short RunThe immediate to short term effects are that fresh graduates fail to obtain positions that are highly desired by them if they graduate in a recession and shifting between jobs is even quite difficult (Oreopoulos 23).

Even after the recession when the economic conditions become positive they end up working in the same positions (SABLIK 11). They even fail to bargain for higher paying jobs as they fail to gain employment in high paying positions. For example: Kahn figured out that those who graduate during recessionary period earn around 3 to 5 percent less over a period of 20 years (Kahn 310).Conclusion Those individuals who gain graduation during recessionary sessions do not face difference in gaining job opportunities and working hours in the long run as compared to their peers who graduate during booming conditions.

In the short run they experience failure to find high paying jobs, desirable positions, failure to switch jobs and demand low wage rates.Works CitedKahn, L.B. "The Long-Term Labor Market Consequences of Graduating from College in a Bad Economy." Labour Economics. 17.2 (2010): 303-316. Print.Liu, Kai. Good Skills in Bad Times: Cyclical Skill Mismatch and the Long-Term Effects of Graduating in a Recession. IZA Bonn, 2012. Internet resource.Oreopoulos, Philip, Andrew Heisz, and Till . Wachter. The Short and Long-Term Career Effects of Graduating in a Recession: Hysteresis and Heterogeneity in the Market for College Graduates.

Cambridge, Ma: National Bureau of Economic Research, 2005. Internet resource.SABLIK, TIM. "Are New Graduates Left Behind in a Recession?." Federal Reserve Bank of Richmond. N.p., n.d. Web. 10 Dec. 2012. .