- Title
- Technology Boom, Labor Reallocation, and Human Capital Depreciation
- Author(s)
- Johan Hombert Johan Hombert (HEC Paris and CEPR )
- Adrien Matray Adrien Matray (Princeton University)
- Abstract
- We study the long-run effect on productivity of labor reallocation during a technology boom. Using French matched employer-employee data, we examine the large cohort of workers who enter the information and communication technology sector during the late 1990s boom. Despite starting with 5% higher wages, these workers experience lower wage growth and end up with 6% lower wages fifteen years out, relative to similar workers who started in other sectors. The long-run wage discount is concentrated on STEM occupations, consistent with a skill obsolescence mechanism. Other moments of the wage distribution are inconsistent with selectioneffects and negative demand shocks.
- Creation Date
- 2019-09
- Section URL ID
- Paper Number
- 260
- URL
- https://gceps.princeton.edu/wp-content/uploads/2020/01/260_Matray_Hombert.pdf
- File Function
- Jel
- L86, E24, J24
- Keyword(s)
- Suppress
- false
- Series
- 3