Displacement in New Economy Labor Markets: How High-Tech Cities Influence Post-Displacement Wage Loss

• In Event: 355 - Section on Economic Sociology Roundtable Session (one-hour).
  In Refereed Roundtable: Table 04. Labor Market Processes

Abstract

We use data from the 2012 Displaced Workers Supplement of the Current Population Survey to examine both the direct and moderating effects that residing in high-technology cities has on post-displacement wage loss. This study contributes to previous research seeking to explain post-displacement wage loss and is the first to use national data to examine how high-tech cities influence post-displacement wages. Our findings partially support our hypotheses with respect to the wage enhancing effect of human capital, the wage depressing effect of age and the relevance of workers’ being in high-tech versus low-tech cities. These findings are relevant both for theorizing about the new economy and for policy.

Authors

• Daniel Jonathan Davis, University of North Carolina-Charlotte

• Beth A. Rubin, University of North Carolina-Charlotte