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Changes in Labor Force Composition and Male Earnings: A Production Approach

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  • Mark C. Berger

Abstract

Models of aggregate production are estimated and used to investigate the effects of changes in labor force composition on the recently observed decline in the earnings of college graduates relative to other workers and on the fall in the earnings of younger workers relative to older workers. Changes in labor force composition explain substantial proportions of these observed earnings changes. The most important compositional change appears to have been the rapid increase in the number of young male college graduates. Projections outside the sample are consistent with depressed earnings throughout the lifetimes of the large baby-boom cohorts, especially among college graduates, but do not suggest that depressed college graduate earnings are a permanent phenomenon for all birth cohorts.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 18 (1983)
Issue (Month): 2 ()
Pages: 177-196

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Handle: RePEc:uwp:jhriss:v:18:y:1983:i:2:p:177-196

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Web page: http://jhr.uwpress.org/

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Cited by:
  1. Piekkola, Hannu, 2006. "Tax cuts and employment: Evidence from Finnish linked employer-employee data," Discussion Papers 1041, The Research Institute of the Finnish Economy.
  2. Wasmer, Etienne, 2001. "Between-group Competition in the Labor Market and the Rising Returns to Skill: US and France 1964-2000," IZA Discussion Papers 292, Institute for the Study of Labor (IZA).
  3. √Čtienne Wasmer, 2006. "Links between Labor Supply and Unemployment: Theory and Empirics," Cahiers de recherche 0615, CIRPEE.
  4. George J. Borjas, 1986. "The Sensitivity of Labor Demand Functions to Choice of Dependent Variable," NBER Working Papers 1624, National Bureau of Economic Research, Inc.
  5. Mark Berger, 1989. "Demographic Cycles, Cohort Size, and Earnings," Demography, Springer, vol. 26(2), pages 311-321, May.
  6. Wolff, Edward N., 2007. "The retirement wealth of the baby boom generation," Journal of Monetary Economics, Elsevier, vol. 54(1), pages 1-40, January.
  7. Timothy J. Bartik, 1999. "Aggregate Effects in Local Labor Markets of Supply and Demand Shocks," Upjohn Working Papers and Journal Articles 99-57, W.E. Upjohn Institute for Employment Research.
  8. James Stewart & Thomas Hyclak, 1986. "The effects of immigrants, women, and teenagers on the relative earnings of black males," The Review of Black Political Economy, Springer, vol. 15(1), pages 93-101, June.
  9. Etienne Wasmer, 2006. "Links between Labor Supply and Unemployment: Theory and Empirics," Sciences Po publications 06-15, Sciences Po.

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