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Long-Term Wage Fluctuations with Industry-Specific Human Capital

  • Weinberg, Bruce A

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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File URL: http://dx.doi.org/10.1086/209985
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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
Contact details of provider: Web page: http://www.journals.uchicago.edu/JOLE/

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