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Earnings on the Information Technology Roller Coaster: Insight from Matched Employer-Employee Data

  • Julie L. Hotchkiss

    ()

    (Federal Reserve Bank of Atlanta, Research Department and Andrew Young School of Policy Studies, Georgia State University)

  • M. Melinda Pitts

    ()

    (Federal Reserve Bank of Atlanta, Research Department)

  • John C. Robertson

    ()

    (Federal Reserve Bank of Atlanta, Research Department)

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-1990s 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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Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 73 (2006)
Issue (Month): 2 (October)
Pages: 342–361

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Handle: RePEc:sej:ancoec:v:73:2:y:2006:p:342-361
Contact details of provider: Web page: http://www.southerneconomic.org/

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  1. Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, vol. 113(485), pages F3-F33, February.
  2. 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.
  3. 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, pages 1-18.
  4. 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.
  5. Sabrina Wulff Pabilonia & Cindy Zoghi, 2004. "Which Workers Gain from Computer Use?," Working Papers 373, U.S. Bureau of Labor Statistics.
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