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

Author

Listed:
  • Johan Hombert

    (HEC Paris and CEPR)

  • Adrien Matray

    (Princeton University)

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.

Suggested Citation

  • Johan Hombert & Adrien Matray, 2019. "The Long-Term Consequences of the Tech Bubble on Skilled Workers' Earnings," Working Papers 255, Princeton University, Department of Economics, Center for Economic Policy Studies..
    • Handle: RePEc:pri:cepsud:255
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    File URL: https://gceps.princeton.edu/wp-content/uploads/2019/06/255matray.pdf
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    References listed on IDEAS

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    Cited by:

    1. Swati Singh & Sita Vanka, 2021. "Career Break, Not a Brake on Career: A Study of the Reasons and Enablers of Women’s Re-entry to Technology Careers in India," Business Perspectives and Research, , vol. 9(2), pages 195-214, May.

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    More about this item

    Keywords

    France;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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