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Why Some Scars From the Recession May Never Vanish

Kahn added, workers might have had a chance to adapt and learn new skills; instead, the recession left millions of them jobless in an environment where there was little demand for their labor. Work like that of Ms. Kahn and Mr. Krueger suggests that what begins as a cyclical recession-driven problem can harden into a permanent structural issue. That could carry a lesson for policy makers: If the United States no longer recovers as quickly from recessions as it once did, and if those slow recoveries can leave permanent scars on workers, then it is all the more important to kick-start the economy before too Skip Tracing much damage is done. Ben S. Bernanke, then the chairman of the Federal Reserve, warned during the recession and the recovery that workers who stayed unemployed too long might drift too far away from the labor market to return. Mr. Yagan’s research suggests that efforts by the Fed, Congress and the Obama administration to prevent that had not gone far enough. Jared Bernstein, a former economic adviser to Vice President Joseph R.

For the original version including any supplementary images or video, visit https://www.nytimes.com/2017/10/05/business/economy/recession-recovery.html

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