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Earnings on the information technology roller coaster: insight from matched employer-employee data

Hotchkiss, Julie L. and Pitts, M. Melinda and Robertson, John (2006): Earnings on the information technology roller coaster: insight from matched employer-employee data. Published in: Southern Economic Journal , Vol. 73, No. 2 (October 2006): pp. 342-361.

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Abstract

This article 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-1990's and bust in the early 2000s. The results show that even after controlling for pre-boom individual characteristics, 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 workers who took a non-IT employment path. For IT manufacturing workers, there is no benefit to having been touched by technology, likely because of the nontransferability of manufacturing experience to other industries.

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