Failure To Launch

An interesting piece I found by way of Timothy Taylor’s excellent recommended reading section in the Journal of Economic Perspectives.

It’s called “Failure to Launch: Structural Shift and the New Lost Generation” by Carnevale, Hanson and Gulish.

There is a good discussion of how labour market entry is delayed – you can’t talk about people getting jobs at age 18 in any model because that’s simply not the case for the vast majority of young people.

This graph showing how it has taken longer for young people to reach the median wage has enormous implications for family formation, retirement policy, housing affordability and lifetime utility maximisation.

Georgetown has been quite good the past few years – it produced a really good report of earnings by major that I hope has helped high school seniors in the US make better college major decisions.