The Long-Term Consequences of the Tech Bubble on Skilled Workers' Earnings
46 Pages Posted: 4 Jun 2018 Last revised: 1 Mar 2019
Date Written: February 2019
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.
Keywords: Tech Bubble, Labor Misallocation
JEL Classification: E24, J24, O33
Suggested Citation: Suggested Citation