EconPapers    
Economics at your fingertips  
 

The Long-Term Consequences of the Tech Bubble on Skilled Workers' Earnings

Johan Hombert and Adrien Matray ()
Additional contact information
Johan Hombert: HEC Paris - Finance Department
Adrien Matray: Princeton University

No 1294, HEC Research Papers Series from HEC Paris

Abstract: We use French matched employer-employee data to track skilled individuals entering the labor market during the late 1990s tech bubble. The boom led to a sharp increase in the share of skilled entrants in the tech sector, which offers relative higher wages at the time. When the boom ends, however, the wage premium reverses and these skilled workers end up with a 5.5% wage discount ten years out, relative to similar peers who started in a non-tech sector. Other moments of the wage distribution of the boom, pre-boom, and post-boom cohorts are inconsistent with explanations based on a selection effect or a cycle effect. Instead, we provide suggestive evidence that workers allocated to the booming tech sector accumulate human capital early in their career that rapidly becomes obsolete.

Keywords: ICT; ICT boom; wage dynamics (search for similar items in EconPapers)
JEL-codes: J31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ure
Date: 2018-02-25
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3187093 Full text (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebg:heccah:1294

DOI: 10.2139/ssrn.3187093

Access Statistics for this paper

More papers in HEC Research Papers Series from HEC Paris HEC Paris, 78351 Jouy-en-Josas cedex, France. Contact information at EDIRC.
Bibliographic data for series maintained by Antoine Haldemann ().

 
Page updated 2019-04-20
Handle: RePEc:ebg:heccah:1294