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

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

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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Paper provided by Federal Reserve Bank of Atlanta in its series Working Paper with number 2005-11.

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Date of creation: 2005
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Handle: RePEc:fip:fedawp:2005-11
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  1. 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.
  2. 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.
  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. Sabrina Wulff Pabilonia & Cindy Zoghi, 2004. "Which Workers Gain from Computer Use?," Working Papers 373, U.S. Bureau of Labor Statistics.
  5. 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.
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