Initial Industry and Long-Term Earnings Growth

Stephen L. Ross () and Patralekha Ukil ()
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Stephen L. Ross: University of Connecticut
Patralekha Ukil: San Jose State University

No 2021-002, Working Papers from Human Capital and Economic Opportunity Working Group

Abstract: We test whether employment growth of male worker's initial industry influences earnings growth using the 1979 National Longitudinal Survey of Youth. We follow workers for 20 years after reporting their first industry finding that lower employment growth in initial industry implies substantially lower earnings growth. Notably, after controlling for observable skills, controls for family background and region have no impact on estimates. Effects appear larger for initial occupations that involve more routine or manual tasks, as well as for occupations that involve less abstract tasks, but these differences are not statistically significant.

Keywords: industry; earnings growth; employment growth; early life choices; routine tasks (search for similar items in EconPapers)
JEL-codes: J20 J30 O30 (search for similar items in EconPapers)
Date: 2021-01
Note: MIP
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http://humcap.uchicago.edu/RePEc/hka/wpaper/Ross_U ... -earnings-growth.pdf First version, January 8, 2021 (application/pdf)

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