[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/fip/fedgfe/2001-19.html
   My bibliography  Save this paper

Looking ahead: young men, wage growth, and labor market participation

Author

Listed:
  • Stephanie Aaronson
Abstract
Despite the long economic expansion, employment among young men is lower today than it was in the late 1960s. This decline has been largely driven by a 17 percentage point reduction in the proportion of high school dropouts working even a single week per year. One common explanation for this trend, declining real wages, ignores the fact that the value of working today depends on future returns to experience. This paper estimates a model of labor supply with returns to experience as an explanatory variable, using data from the Current Population Survey. The classic myopic labor supply model (in which only the current wage matters) is rejected in favor of one that includes forward-looking considerations, embodied in returns to experience. For high school dropouts, decreasing returns to experience explain 30 percent of the decline in participation between 1967 and 1977. Changes in wages do not explain any of this trend.

Suggested Citation

  • Stephanie Aaronson, 2001. "Looking ahead: young men, wage growth, and labor market participation," Finance and Economics Discussion Series 2001-19, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgfe:2001-19
    as

    Download full text from publisher

    File URL: http://www.federalreserve.gov/pubs/feds/2001/200119/200119abs.html
    Download Restriction: no
    File URL: http://www.federalreserve.gov/pubs/feds/2001/200119/200119pap.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Parama Chaudhury, 2010. "Multi-tasking and the Returns to Experience," Economics Series Working Papers 518, University of Oxford, Department of Economics.

    More about this item

    Keywords

    Wages; Labor supply;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedgfe:2001-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ryan Wolfslayer ; Keisha Fournillier (email available below). General contact details of provider: https://edirc.repec.org/data/frbgvus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.