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Make yourselves scarce: The effect of demographic change on the relative wages and employment rates of experienced workers

Böhm, Michael J., Siegel, Christian (2021) Make yourselves scarce: The effect of demographic change on the relative wages and employment rates of experienced workers. International Economic Review, 62 (4). pp. 1537-1568. ISSN 0020-6598. (doi:10.1111/iere.12524) (KAR id:88066)

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Official URL:
https://doi.org/10.1111/iere.12524

Abstract

This paper studies the impact of demographic change on experienced workers’ relative wages and employment rates. We investigate empirical predictions from aframework of supply and demand for experience skill, using variation across U.S. local labor markets (LLMs) over the last decades and instrumenting experienceskill supply by the LLMs’ age structures a decade earlier. We find that aging substantially reduces experienced workers’ relative wages and full-time employmentrates, and also their labor market participation rates. Our results imply that the effect of demographic change on labor markets might be more severe than previously recognized, as it reaches beyond wages.

Item Type: Article
DOI/Identification number: 10.1111/iere.12524
Uncontrolled keywords: Demographic change, employment of experienced workers, return to experience
Subjects: H Social Sciences
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Christian Siegel
Date Deposited: 12 May 2021 15:33 UTC
Last Modified: 22 May 2023 23:00 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/88066 (The current URI for this page, for reference purposes)
Siegel, Christian: https://orcid.org/0000-0002-1686-8686
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