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

Johan Hombert and Adrien Matray
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Johan Hombert: HEC Paris and CEPR
Adrien Matray: Princeton University

Working Papers from Princeton University, Department of Economics, Center for Economic Policy Studies.

Abstract: Using matched employer-employee data from France, we uncover an ICT boom-cohort discount on the long-term earnings of the large cohort of skilled workers entering in the Information and Communication Technology (ICT) sector during the 1990s Tech Bubble. 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 outside the ICT sector. Other moments of the wage distribution are inconsistent with selection effects. We provide suggestive evidence that these workers accumulate human capital early in their career that rapidly depreciates.

Keywords: France (search for similar items in EconPapers)
JEL-codes: J31 O31 (search for similar items in EconPapers)
Date: 2019-02
New Economics Papers: this item is included in nep-ict
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pri:cepsud:255

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