Title

Technology Boom, Labor Reallocation, and Human Capital Depreciation

Author(s)

Johan Hombert Johan Hombert (HEC Paris)

Adrien Matray Adrien Matray (Princeton University)

Abstract

During the late 1990s boom, one-third of skilled labor market entrants joined the Information and Communication Technology (ICT) sector. We use French linked employer-employee data to study their wage dynamics. 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 not explained by selection, job losses or persistently low demand for ICT services. It is concentrated in STEM occupations, consistent with obsolescence of technical skills accelerating during a technological boom.

Creation Date

2021-12

Section URL ID

Paper Number

2021-81

URL

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3187093

File Function

Jel

E24, J24, O33

Keyword(s)

Labor, Employment, France

Suppress

false

Series

13