Earnings on the Information Technology Roller Coaster: Insight from Matched Employer-Employee Data
FRB of Atlanta Working Paper No. 2005-11
32 Pages Posted: 5 Jul 2005
Date Written: June 2005
Abstract
This paper uses matched employer-employee data for the state of Georgia to examine workers' earnings experience through the information technology (IT) sector's employment boom of the mid-1990s and its bust in the early 2000s. The results show that even after controlling for individual characteristics before the sector's boom, transitioning out of the IT sector to a non-IT industry generally resulted in a large wage penalty. However, IT service workers who transitioned to a non-IT industry still fared better than those who took a non-IT employment path. For IT manufacturing workers, there is no benefit to having worked in tech, likely because of the nontransferability of manufacturing experience to other industries.
Keywords: Information technology, earnings, employer-employee matched data
JEL Classification: J31, J24
Suggested Citation: Suggested Citation
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