MAKE YOURSELVES SCARCE: THE EFFECT OF DEMOGRAPHIC CHANGE ON THE RELATIVE WAGES AND EMPLOYMENT RATES OF EXPERIENCED WORKERS

• DOI: 10.1111/iere.12524
• Publication Date: 2021-05-22T14:19:42Z
• Authors: Michael J. Böhm; Christian Siegel
• Keywords: Demographic change; Empirical evidence; Real wages; Labor demand

Abstract This article studies the impact of demographic change on experienced workers' relative wages and employment rates. We investigate empirical predictions from a framework supply demand for experience skill, using variation across U.S. local labor markets (LLMs) over last decades instrumenting skill by LLMs' age structures decade earlier. find that aging substantially reduces full‐time rates, also their market participation Our results imply effect might be more severe than previously recognized, as it reaches beyond wages.