Full Citation

Title: Experience-Biased Technical Change

Citation Type: Working Paper

Publication Year: 2015

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Abstract: The baby-boom cycle has caused very large swings in the relative supply of experienced workers (first a large decline, and then a large increase). Yet, the experience premium has failed to decline markedly in the period where the supply of experience has increased. I develop a methodology to estimate the increase in the relative demand for experience that is required to reconcile the behavor of prices and quantities, and show this to have been large - a phenomenon I dub experience-biased technical change. I conjecture that one of the drivers of experience-biased technical change is a decline in the relative demand for physical strength. In support this conjecture, I show that occupations requiring high or moderate physical strength have accounted for a declining share of weeks worked in the economy, with sedentary occupations experiencing a corresponding increase. I also confirm that older workers have a comparative disadvantage in occupations requiring physical strength.

Url: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=10752#

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Authors: Caselli, Francesco

Series Title: CEPR Discussion Papers

Publication Number: DP10752

Institution: CEPR

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Data Collections: IPUMS USA

Topics: Other

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