Do employers provide insurance against low frequency shocks? Industry employment and industry wages

• 成果类型: Article
• 署名作者: Devereux, PJ
• 署名单位: University of California System; University of California Los Angeles
• 刊物名称: JOURNAL OF LABOR ECONOMICS
• ISSN/ISSBN: 0734-306X
• DOI: 10.1086/428026
• 发表日期: 2005
• 页码: 313-340
• 关键词: sectoral shifts; textiles; TRENDS; 1980S

摘要

I use panel data to examine whether long-term changes in industry wages are positively related to long-term changes in industry employment. Previous research using repeated cross-sectional data found no systematic relationship between these variables. Using standard fixed effects models to deal with individual heterogeneity, I find a robust positive relationship between changes in composition-constant industry wages and industry employment. This suggests that growing industries attract less skilled individuals in a manner that biases down the estimated relationship between industry employment and wages in repeated cross-sectional data. The results imply that supply curves facing industries are elastic but upward sloping.