ERIC Number: ED162583
Record Type: RIE
Publication Date: 1978-Feb
Reference Count: 0
Local Labor Markets and Cyclic Components in Demand for College Trained Manpower.
Smith, James P.; Welch, Finis R.
Weekly earnings of college and high school graduates were examined and partitioned on the basis of estimated years of work experience. Current Population Surveys (CPS) for each year from 1968 to 1975 were examined. The CPS data are useful to test for the importance of local labor markets because individuals can be assigned to markets by calendar year and area of residence. Contrary to the established conviction, wage rates were found to be sensitive to business cycles. This sensitivity appears, holding industry constant, to be skill neutral so that business cycle movements apparently explain little of the recent time series behavior of relative wages of college graduates. Some important movements in wage rates among areas were also identified. These wage differentials seem more sensitive to employment deviations and trends than was initially expected. (Author/SW)
Descriptors: Business Cycles, College Graduates, Demand Occupations, Economic Factors, Followup Studies, High School Graduates, Higher Education, Income, Labor Market, Labor Needs, Salaries, Statistical Analysis, Surveys, Wages
The Rand Corporation, Santa Monica, California 90406 ($3.00)
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: Rand Corp., Santa Monica, CA.