Individual consequences of occupational decline

Per-Anders Edin, Tiernan Evans, Georg Graetz, Sofia Hernnäs and Guy Michaels

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We assess the career earnings losses that individual Swedish workers suffered when their occupations’ employment declined. High-quality data allow us to overcome sorting into declining occupations on various attributes, including cognitive and non-cognitive skills. Our estimates show that occupational decline reduced mean cumulative earnings from 1986–2013 by no more than 2%–5%. This loss reflects a combination of reduced earnings conditional on employment, reduced years of employment and increased time spent in unemployment and retraining. While on average workers successfully mitigated their losses, those initially at the bottom of their occupations’ earnings distributions lost up to 8%–11%.

Keywords: technological change; occupations; inequality (search for similar items in EconPapers)
JEL-codes: J24 O33 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2023-08-01
New Economics Papers: this item is included in nep-neu
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Citations: View citations in EconPapers (4)

Published in Economic Journal, 1, August, 2023, 133(654), pp. 2178 - 2209. ISSN: 0013-0133

Downloads: (external link)
http://eprints.lse.ac.uk/118558/ Open access version. (application/pdf)

Related works:
Journal Article: Individual Consequences of Occupational Decline (2023)
Working Paper: Individual consequences of occupational decline (2019)
Working Paper: Individual Consequences of Occupational Decline (2019)
Working Paper: Individual Consequences of Occupational Decline (2019)
Working Paper: Individual consequences of occupational decline (2019)
Working Paper: Individual Consequences of Occupational Decline (2019)
Working Paper: Individual Consequences of Occupational Decline (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:118558

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