Graduating a recession just a scratch, or a lifelong scar?

Starting at the labor market under bad economic circumstances may cause difficulties when looking for the right job. Do these negative effects persist in the long run? This study researches the long-term effects on wage of graduating in a recession in the Netherlands. A mincer model is used to analyze data from the labor supply panel. The results show an initial negative effect on wage of graduating in a recession. The long-term effect depends on the definition of a recession and is not present in every scenario.