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

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Abstract

This paper 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 its bust in the early 2000s. The results show that even after controlling for individual characteristics before the sector?s boom, 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 those who took a non-IT employment path. For IT manufacturing workers, there is no benefit to having worked in tech, likely because of the nontransferability of manufacturing experience to other industries.

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  • Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2005. "Earnings on the information technology roller coaster: insight from matched employer-employee data," FRB Atlanta Working Paper 2005-11, Federal Reserve Bank of Atlanta.
    • Handle: RePEc:fip:fedawp:2005-11
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    1. 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.
    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," FRB Atlanta Working Paper 2004-19, Federal Reserve Bank of Atlanta.
    3. 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 3-33, February.
    4. Sabrina Wulff Pabilonia & Cindy Zoghi, 2004. "Which Workers Gain from Computer Use?," Working Papers 373, U.S. Bureau of Labor Statistics.
    5. 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.
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    1. Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2008. "The Push-Pull Effects of the Information Technology Boom and Bust," Economic Development Quarterly, , vol. 22(3), pages 200-212, August.
    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," FRB Atlanta Working Paper 2006-01, Federal Reserve Bank of Atlanta.

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    More about this item

    JEL classification:

    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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