Essays on the Long-Term Consequences from Entering the Labor Market During a Recession

Starting a career during a recession can be difficult. The lack of job opportunities and increased number of job applicants means a lot of competitive pressure for inexperienced job-seekers. After exhaustive searches, many may accept lower wages than they would if the economy were booming. Over time, these unfortunate circumstances lead to a long-term negative wage disparity called scarring. In this dissertation, I first study scarring in the context of migration. I find scarring can be particularly severe for vulnerable groups like refugees. I also study scarring in the context of policy by looking at recently passed Salary History Ban laws. I find the scarring effect is partially reversed when employers no longer ask about prior salary and/or advertise expected salaries in their job postings.