Long-Term Wage Fluctuations with Industry-Specific Human Capital

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Long-Term Wage Fluctuations with Industry-Specific Human Capital

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Weinberg, Bruce A

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Bruce A. Weinberg

Abstract

Exploiting long term interindustry demand shifts, this article provides evidence that (1) industry-level wages do not respond to industry demand conditions; (2) at the industry level, the employment of young workers responds more to demand shifts than does the employment of experienced workers; and (3) the postdisplacement wages of displaced workers are strongly affected by demand in their predisplacement industries. These findings are consistent with a model in which worker's investments in industry-specific skills pose a barrier to interindustry labor mobility and wages do not respond to spot labor market conditions. Copyright 2001 by University of Chicago Press.

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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 19 (2001)
Issue (Month): 1 (January)
Pages: 231-64
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Handle: RePEc:ucp:jlabec:v:19:y:2001:i:1:p:231-64

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Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2004. "Wage gains among job changers across the business cycle:> insight from state administrative data," Working Paper 2004-19, Federal Reserve Bank of Atlanta. [Downloadable!]
Ana Rute Cardoso & Miguel Portela, 2005. "The Provision of Wage Insurance by the Firm: Evidence from a Longitudinal Matched Employer-Employee Dataset," IZA Discussion Papers 1865, Institute for the Study of Labor (IZA). [Downloadable!]
Other versions:
- Miguel Portela & Ana Rute Cardoso, 2005. "The provision of wage insurance by the firm: evidence from a longitudinal matched employer-employee dataset," NIPE Working Papers 17/2005, NIPE - Universidade do Minho. [Downloadable!]
Yih-chyi Chuang & Chun-yuan Lee, 2004. "Industry-specific human capital and the wage profile: Evidence from Taiwan," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 140(1), pages 110-124, March. [Downloadable!] (restricted)
Donghoon Lee & Kenneth I. Wolpin, 2004. "Intersectoral Labor Mobility and the Growth of the Service Sector," PIER Working Paper Archive 04-036, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania. [Downloadable!]
Other versions:
- Donghoon Lee & Kenneth I. Wolpin, 2006. "Intersectoral Labor Mobility and the Growth of the Service Sector," Econometrica, Econometric Society, vol. 74(1), pages 1-46, 01. [Downloadable!] (restricted)

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