English, Article edition: Do Employers Provide Insurance against Low Frequency Shocks? Industry Employment and Industry Wages Paul J. Devereux

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Bookmark: http://trove.nla.gov.au/version/196092
Physical Description
  • article
Language
  • English

Edition details

Title
  • Do Employers Provide Insurance against Low Frequency Shocks? Industry Employment and Industry Wages
Author
  • Paul J. Devereux
Physical Description
  • article
Notes
  • 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.
  • RePEc:ucp:jlabec:v:23:y:2005:i:2:p:313-340
Language
  • English
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