Area Economic Conditions and the Labor Market Outcomes of Young Men in the 1990s Expansion

Richard B. Freeman, William M. Rodgers III

NBER Working Paper No. 7073
Issued in April 1999
NBER Program(s):   LS

The current expansion has shattered the length of the previous longest peace-time boom and brought unemployment rates below four percent in 44 percent of metropolitan areas. We estimate the expansion's impact on the labor market outcomes of less-educated men. We find that young men, especially young African American men in tight labor markets experienced a boost in employment and earnings. Adult men had no gains, and their earnings barely changed even in areas with unemployment rates below 4 percent. Youths have higher earnings and employment in low crime states and poorer labor market outcomes in states where incarcerations are high.

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Published: Cherry, Robert and William M. Rodgers III (eds.) Prosperity for All? The Economic Boom and African Americans. NY: Russell Sage Foundation, 2000.

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