RESUMO
This study investigates the long-term effects of initial labor market conditions by comparing cohorts who graduated from college before, during, and after the 1997-1998 Asian financial crisis in South Korea. We measure the overall welfare effect by examining their labor market activities, family formation, and household finances. Using data from 20 waves of the Korean Labor and Income Panel Study, we find a substantial and persistent reduction in employment, earnings, marriage, fertility, and asset building among men who graduated during the recession. For women, limited job opportunities at graduation resulted in an increase in childbearing. We also find evidence that family provides a risk-sharing mechanism for recession graduates. Our results suggest that labor market entry in a large-scale recession has prolonged effects on a young worker's life course even after the penalties in the labor market have disappeared.
RESUMO
Sex ratio at birth remains highly skewed in many Asian countries because of son preference. The ratio in South Korea, however, declined beginning in 1990 and reached the natural range in 2007. We study changes in child gender effects on fertility and parental investment during this period of decreasing sex ratio at birth. We find that gender discrimination on the extensive margin (fertility), such as sex-selective abortions and son-biased stopping rules, have nearly disappeared among recent cohorts. On the intensive margin (parental inputs), boys receive higher expenditures on private academic education, have mothers with fewer hours of labor supply, and spend less time on household chores relative to girls. These gender gaps have also narrowed substantially, however, over the past two decades. We consider alternative explanations, but altogether, evidence suggests the weakening of son preference in South Korea.