Must-Read: Danny Yagan: Enduring Employment Losses from the Great Recession?: Longitudinal Worker-Level Evidence: “The severity of the Great Recession varied across U.S. local areas…

…Comparing two million workers within firms across space, I find that starting the recession in a below-median 2007-2009-employment-shock area caused workers to be 1.0 percentage points less likely to be employed in 2014, relative to starting elsewhere. These enduring employment losses hold even when controlling for current local unemployment rates, which have converged across space. The results demonstrate limits to U.S. local labor market integration and suggest hysteresis effects culminating in labor force exit.