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Initial Industry and Long-Term Earnings Growth

Author

Listed:
  • Stephen L. Ross

    (University of Connecticut)

  • Patralekha Ukil

    (San Jose State University)

Abstract

We test whether employment growth of male worker’s initial industry influences earnings growth using the 1979 National Longitudinal Survey of Youth. We follow workers for 20 years after reporting their first industry finding that lower employment growth in initial industry implies substantially lower earnings growth. Notably, after controlling for observable skills, controls for family background and region have no impact on estimates. Effects appear larger for initial occupations that involve more routine or manual tasks, as well as for occupations that involve less abstract tasks, but these differences are not statistically significant.

Suggested Citation

  • Stephen L. Ross & Patralekha Ukil, 2021. "Initial Industry and Long-Term Earnings Growth," Working papers 2021-01, University of Connecticut, Department of Economics.
    • Handle: RePEc:uct:uconnp:2021-01
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Industry; Earnings Growth; Employment Growth; Early Life Choices; Routine Tasks;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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