Do Employers Provide Insurance against Low Frequency Shocks? Industry Employment and Industry Wages
AbstractI use panel data to examine whether long-term changes in industry wages are positively related to long-term changes in industry employment. Previous research using repeated cross-sectional data found no systematic relationship between these variables. Using standard fixed effects models to deal with individual heterogeneity, I find a robust positive relationship between changes in composition-constant industry wages and industry employment. This suggests that growing industries attract less skilled individuals in a manner that biases down the estimated relationship between industry employment and wages in repeated cross-sectional data. The results imply that supply curves facing industries are elastic but upward sloping.
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Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Labor Economics.
Volume (Year): 23 (2005)
Issue (Month): 2 (April)
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Web page: http://www.journals.uchicago.edu/JOLE/
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- Gábor Kátay, 2008.
"Do Firms ProvideWage Insurance Against Shocks? – Evidence from Hungary,"
MNB Working Papers
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- Miguel Portela & Ana Rute Cardoso, 2005.
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- Guertzgen, Nicole, 2009. "Wage insurance within German firms: do institutions matter?," ZEW Discussion Papers 09-043, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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