Who Suffers During Recessions?
Journal of Economic Perspectives, Volume 26, Number 3, Summer 2012, pages 27–48 (with Doug Miller and Jessamyn Schaller).
Abstract
The Great Recession generated large reductions in employment, earnings, he Great Recession generated large reductions in employment, earnings, and income for workers and families in the United States. The seasonally and income for workers and families in the United States. The seasonally adjusted unemployment rate increased from 5 percent in December 2007 to adjusted unemployment rate increased from 5 percent in December 2007 to 9.5 percent in June 2009, the start and end of the recession according to the National 9.5 percent in June 2009, the start and end of the recession according to the National Bureau of Economic Research. From 2007 to 2010, median real family income fell by 6 percent and the poverty rate 2007 to 2010, median real family income fell by 6 percent and the poverty rate increased from 12.5 percent to 15.1 percent (DeNavas-Walt, Proctor, and Smith increased from 12.5 percent to 15.1 percent (DeNavas-Walt, Proctor, and Smith 2011). The recovery since June 2009 has been slow relative to historical averages. 2011). The recovery since June 2009 has been slow relative to historical averages. In the more than two and a half years since the offi cial start of the recovery, the In the more than two and a half years since the offi cial start of the recovery, the unemployment rate has fallen by just over a percentage point, reaching 8.3 percent unemployment rate has fallen by just over a percentage point, reaching 8.3 percent in February 2012. The effects of the Great Recession, however, are not experienced in February 2012. The effects of the Great Recession, however, are not experienced equally by all workers. National statistics can obscure dramatic differences in the equally by all workers. National statistics can obscure dramatic differences in the severity of the cyclical impacts for different groups. For example, men experienced severity of the cyclical impacts for different groups. For example, men experienced signifi cantly larger job loss in the Great Recession compared to women, but during signifi cantly larger job loss in the Great Recession compared to women, but during the recovery, male employment is picking up more rapidly (Kochhar 2011). the recovery, male employment is picking up more rapidly (Kochhar 2011).
Additional Information
Media: The Wall Street Journal, Forbes
Research Summary: UC Davis Center for Poverty Research, NBER DIgiest