Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/227794 
Year of Publication: 
2019
Series/Report no.: 
School of Economics Discussion Papers No. 1902
Publisher: 
University of Kent, School of Economics, Canterbury
Abstract: 
We argue that rising supply of experience not only reduces experienced workers' relative wages but also their relative labor market participation. From a theoretical model we 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 experienced workers' relative wages and employment rates, and also their labor market participation rates. Our results imply thatthe effect of demographic change on labor markets might be more severe than previously recognized, as it reaches beyond wages.
Subjects: 
Demographic Change
Employment of Experienced Workers
Return to Experience
JEL: 
J11
J21
J31
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.