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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.

Suggested Citation

  • Mark C. Berger, 1983. "Changes in Labor Force Composition and Male Earnings: A Production Approach," Journal of Human Resources, University of Wisconsin Press, vol. 18(2), pages 177-196.
    • Handle: RePEc:uwp:jhriss:v:18:y:1983:i:2:p:177-196
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    Citations

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    Cited by:

    1. John Moffat & Duncan Roth, 2016. "The Cohort Size-Wage Relationship in Europe," LABOUR, CEIS, vol. 30(4), pages 415-432, December.
    2. Wolff, Edward N., 2007. "The retirement wealth of the baby boom generation," Journal of Monetary Economics, Elsevier, vol. 54(1), pages 1-40, January.
    3. Espinoza, Raphael & Ostry, Jonathan D. & Papageorgiou, Chris, 2019. "The Armistice of the Sexes: Gender Complementarities in the Production Function," CEPR Discussion Papers 13792, C.E.P.R. Discussion Papers.
    4. Mario Reinhold & Stephan Thomsen, 2017. "The changing situation of labor market entrants in Germany [Die veränderliche Situation für Berufseinsteiger in Deutschland]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 50(1), pages 161-174, August.
    5. Piekkola, Hannu, 2006. "Tax cuts and employment: Evidence from Finnish linked employer-employee data," Discussion Papers 1041, The Research Institute of the Finnish Economy.
    6. Etienne Wasmer, 2009. "Links between labor supply and unemployment: theory and empirics," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(3), pages 773-802, July.
    7. Duncan Roth & John Moffat, 2014. "Cohort size and youth unemployment in Europe: a regional analysis," ERSA conference papers ersa14p1546, European Regional Science Association.
    8. repec:eee:labchp:v:1:y:1986:i:c:p:525-602 is not listed on IDEAS
    9. Wasmer, Etienne, 2001. "Between-Group Competition In The Labour Market And The Rising Returns To Skill: US And France 1964-2000," CEPR Discussion Papers 2798, C.E.P.R. Discussion Papers.
    10. Li, Hongbin & Ma, Yueyuan & Meng, Lingsheng & Qiao, Xue & Shi, Xinzheng, 2017. "Skill complementarities and returns to higher education: Evidence from college enrollment expansion in China," China Economic Review, Elsevier, vol. 46(C), pages 10-26.
    11. Borjas, George J, 1986. "The Sensitivity of Labor Demand Functions to Choice of Dependent Variable," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 58-66, February.
    12. 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;National Economic Association, vol. 15(1), pages 93-101, June.
    13. Mark Berger, 1989. "Demographic Cycles, Cohort Size, and Earnings," Demography, Springer;Population Association of America (PAA), vol. 26(2), pages 311-321, May.
    14. Hamermesh, Daniel S., 1987. "The demand for labor in the long run," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 8, pages 429-471, Elsevier.
    15. Erik Mellander, 2000. "The Multi-Dimensional Nature of Labor Demand and Skill-Biased Technical Change," Econometric Society World Congress 2000 Contributed Papers 0671, Econometric Society.
    16. 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.
    17. Stephanie Aaronson & Bruce Fallick & Andrew Figura & Jonathan Pingle & William Wascher, 2006. "The Recent Decline in the Labor Force Participation Rate and Its Implications for Potential Labor Supply," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 37(1), pages 69-154.
    18. repec:eee:labchp:v:1:y:1986:i:c:p:429-471 is not listed on IDEAS
    19. John Moffat & Duncan Roth, 2014. "Cohort size and youth labour-market outcomes: the role of measurement error," MAGKS Papers on Economics 201440, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

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