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Nazmi Hoca Doktora Tez

Nazmi Hoca Doktora Tez

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Published by Sami Kaplan

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Published by: Sami Kaplan on Oct 16, 2011
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11/01/2012

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The composition of potential labor market experience was also reported in Table 2.1.

We see a more detailed picture in Figure 2.2. The figure shows the percentages of 4

groups of workers in the wage-earner sample: less than 10, between 10 and 20(not

including 10), between 20 and 30(not including 30), and between 30 and 40 (not

including 40). Of course the shares of these groups are related in a much closer way

than those of the education groups. Since all persons in our group are full time and

full year employees, and their experience increases as years pass, obviously a new

entrant in 1967 will pass from the lowest experience group to the second lowest one

in 1977. Even though some people might drop out of the labor force before they

reach the highest experience group, there is still a strong sense of continuity here.

18

Although this looks quite trivial, there is still something to be learned from here. The

group with the lowest experience, which is the persons with 10 years or less potential

labor market experience, grow compared to other groups until 1980(35%). Then their

share starts falling and never recovers again. The share of the 10-20 group begins to

increase mid-70s (25%) and this trend goes on until 1990(36%). Then it enters its

own free fall which still continues. The third experience group (20-30 years of

experience) recovers from a fall in 1985 (21.1%) and rises until 2002 (30%). Then it

begins to fall too. And the last group, people with 30-40 years experience, lose their

share in the work force until 1990 (13%), then their share begins t rise in a move that

still continues (19.3% in 2005).

These transitions are obviously affected by the demographic development of baby-

boomer population. Someone who was born in 1955 would be in the work force by

1975, adding to the numbers of the lowest experience group. These people would

have ten years of experience during around mid-80s and 20 years of experience

around mid-90s. This obviously fits with our peaks. However, our main focus is not

the baby boomer population. We are more interested in the dates of these transitions.

For our later discussion in wage inequality, it might be a good idea to remember that

the lowest experience group had its highest share at the beginning of 80s then started

decreasing. And also the third group, that is the people with 20 to 30 years o

experience, started increasing their share after 1985. We will refer to these two

groups as “low experience” and “high experience” groups in our discussions.

Figure 2.3 gives us details about the distribution of our sample over major industry

groups. The numbers are given in percentage of people employed in each industry in

a given year.

Looking at Figure 2.3, we see the transformation of US economy in the last three

decades. Manufacturing industry had 38% of all employees that met our criteria of

selection in 1967. In 2005, only 18% of our sample was working in this industry. Of

course there was also productivity increase, however it only partly explains the

change here. This big drop is no surprise to anyone who remembers how some

19

manufacturing sectors like automobile industry have moved their production plants

outside the US. With all of the other industries keeping more or less the same share

as they had in 1967, it appears that the loss of jobs in manufacturing sector was

balanced by more job openings in finance and services sector which doubles its share

after three decades of steady increase. The only other noteworthy change is the

increasing trend in construction share during the nineties and into the new century.

Industrial Distribution, 1967-2005

0

5

10

15

20

25

30

35

40

45

1967197119741977198019831986198919921995199820012004

Year

Share in Sample

Agric.

Mining

Constr.

Manuf.

TCOPU

Trade

Fin.&Serv.

Gov.

Shares of major industry groups in the wage-earner sample. Agric: Agriculture. Constr: Construction. Manuf:

Manufacturing. TCOPU: Transportation, Communication and Public Utilities. Fin. &Serv: Finance and

Services. Gov: Government.

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