Daily Events

Since December 1st till March 31 you can apply to our programs:
Master in Economic Research and PhD in Economics

Entry requirements are:
- BA / MA degree or equivalent
- Proficiency in spoken and written English
- Solid background in mathematics
- Previous education in economics is recommended

Your online application must content following documents:
- Curriculum vitae
- Statement of motivation
- Copies of your diplomas and transcripts
- Proof of English proficiency level
- Contact details for two (or max. three) referees (optional for MA applicants)

For more information please see sections: How to apply to MER or How to apply to PhD
In case of any question, please do not hesitate to contact us at This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it.
or see the FAQ sections for Master´s or Phd program.

You can join the seminar in person at the following address:
CERGE-EI, Politických vězňů 7, Praha 1, room 402
or online at: https://cerge-ei.webex.com/cerge-ei/j.php?MTID=m5c13a001b6a2636b39d247b5a9bb6330
Meeting number: 2741 818 6936
Meeting password: 883964

Presenter: Margarita Pavlova (This email address is being protected from spambots. You need JavaScript enabled to view it.)

Title: "Graduates in a Cycle: Effect of Early-Career Recessions on Labor Market Outcomes of College Graduates"

Abstract:
This paper examines the long-term impact of economic conditions at and after college graduation on labor market outcomes, with a particular focus on the timing of graduation relative to the phase of business cycle. Using data from four major U.S. recessions (1981–1982, 1990, 2001, and 2008–2009), I compare cohorts who graduated just before a recession with those who graduated after, once unemployment had returned to pre-recession levels. On average, graduates who enter the workforce before a recession experience a 19% earnings loss, though the magnitude varies across recessions. To account for the broader economic trajectory beyond initial labor market entry, I construct the accumulated unemployment rate, which captures economic conditions in the two years following graduation. A one percentage point increase in this measure is associated with an average decline of 0.3% in earnings over the first ten years after graduation. Applying this estimate to the case of graduates in 2007, who faced a prolonged economic downturn at the beginning of their career, suggests an average earnings loss of 1.5% compared to individuals who graduated after the Great Recession under comparable unemployment conditions. These findings highlight the importance of both initial labor market conditions and subsequent economic trends in shaping career outcomes. By considering the trajectory of new labor market entrants, this study contributes to the literature on recession-induced scarring effects.

Prof. Alex Gershkov

The Hebrew University of Jerusalem, Israel
University of Surrey, England

Authors: A. Gershkov, B. Moldovanu, P. Strack and M. Zhang

Abstract: We use the tools of mechanism design, combined with the theory of risk measures, to analyze a model where a cash constrained owner of an asset with stochastic returns raises capital from a population of investors that differ in their risk aversion and budget constraints. The distribution of the asset's cash flow is assumed here to be common-knowledge: no agent has private information about it. The issuer partitions and sells the asset's realized cash flow into several asset-backed securities, one for each type of investor. The optimal partition conforms to the commonly observed practice of tranching (e.g., senior debt, junior debt and equity) where senior claims are paid before the subordinate ones. The holders of more senior/junior tranches are determined by the relative risk appetites of the different types of investors and of the issuer, with the more risk averse agents holding the more senior tranches. Tranching endogenously arises here in an optimal mechanism because of simple economic forces: the differences in risk appetites among agents, and in the budget constraints they face.