Do Employers Provide Insurance against Low Frequency Shocks? Industry Employment and Industry Wages
利用面板数据发现，行业工资的长期变化与行业就业的长期变化呈正相关，表明增长行业吸引技能较低的劳动者，导致重复截面数据低估两者关系，且行业面临弹性但向上倾斜的供给曲线。
I use panel data to examine whether long-term changes in industry wages are positively related to long-term changes in industry employment. Previous research using repeated cross-sectional data found no systematic relationship between these variables. Using standard fixed effects models to deal with individual heterogeneity, I find a robust positive relationship between changes in composition-constant industry wages and industry employment. This suggests that growing industries attract less skilled individuals in a manner that biases down the estimated relationship between industry employment and wages in repeated cross-sectional data. The results imply that supply curves facing industries are elastic but upward sloping.