Template-type: ReDif-Paper 1.0
Author-Name: Böhm, M.
Author-Name: Siegel, Christian
Title: Make yourselves scarce: The effect of demographic change on the relative wages and employment rates of experienced workers
Abstract: We argue that rising supply of experience not only reduces experienced workers’ relative<br/>wages but also their relative labor market participation. From a theoretical model we<br/>derive predictions which we quasi-experimentally investigate, using variation across U.S. local labor markets (LLMs) over the last decades and instrumenting experience supply by the LLMs’ age structures a decade earlier. We find that aging substantially reduces<br/>experienced workers’ relative wages and employment rates, and also their labor market<br/>participation rates. Our results imply that the effect of demographic change on labor<br/>markets might be more severe than previously recognized, as it reaches beyond wages.
Classification-JEL: j11,j21,j31
Series: ROA Research Memoranda
Creation-Date: 20190401
Number: 001
File-URL: https://cris.maastrichtuniversity.nl/ws/files/33426210/ROA_RM_2019_1.pdf
File-Format: application/pdf
File-Size: 1172879
Handle: Repec:unm:umaror:2019001
DOI: 10.26481/umaror.2019001