Long‐Term Wage Fluctuations with Industry‐Specific Human Capital
Journal of Labor Economics
2001
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.
- DOI
- 10.1086/209985
- Volume
- 19 (1)
- Pages
- 231-264
- Language
- en
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