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Earnings on the information technology roller coaster: insight from matched employer-employee data

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  • Hotchkiss, Julie L.
  • Pitts, M. Melinda
  • Robertson, John

Abstract

This article uses matched employer-employee data for the State of Georgia to examine workers' earnings experience through the information technology (IT) sector's employment boom of the mid-1990's and bust in the early 2000s. The results show that even after controlling for pre-boom individual characteristics, transitioning out of the IT sector to a non-IT industry generally resulted in a large wage penalty. However, IT service workers who transitioned to a non-IT industry still fared better than workers who took a non-IT employment path. For IT manufacturing workers, there is no benefit to having been touched by technology, likely because of the nontransferability of manufacturing experience to other industries.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 9830.

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Date of creation: Oct 2006
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Publication status: Published in Southern Economic Journal 2.73(2006): pp. 342-361
Handle: RePEc:pra:mprapa:9830

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Related research

Keywords: push-pull; migration; information technology; administrative data; profit analysis;

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References

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  1. Sabrina Wulff Pabilonia & Cindy Zoghi, 2004. "Which Workers Gain from Computer Use?," Working Papers, U.S. Bureau of Labor Statistics 373, U.S. Bureau of Labor Statistics.
  2. Sammis B. White & John F. Zipp & William F. McMahon & Peter D. Reynolds & Jeffrey D. Osterman & Lisa S. Binkley, 1990. "ES202: The Data Base for Local Employment Analysis," Economic Development Quarterly, , vol. 4(3), pages 240-253, August.
  3. 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, Federal Reserve Bank of Atlanta 2004-19, Federal Reserve Bank of Atlanta.
  4. Mary C. Daly & Robert G. Valletta, 2004. "Performance of urban information technology centers: the boom, the bust, and the future," Economic Review, Federal Reserve Bank of San Francisco, Federal Reserve Bank of San Francisco, pages 1-18.
  5. Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 113(485), pages F3-F33, February.
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Cited by:
  1. Hotchkiss, Julie L. & Pitts, M. Melinda & Robertson, John C., 2008. "The Push-Pull Effects of the Information Technology Boom and Bust," MPRA Paper 44800, University Library of Munich, Germany.
  2. Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2006. "The push-pull effects of the information technology boom and bust: insight from matched employer-employee data," Working Paper, Federal Reserve Bank of Atlanta 2006-01, Federal Reserve Bank of Atlanta.

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