Volume 21, Number 4 (Fall) 1986
Connelly, Rachel. 1986. "A Framework for Analyzing the Impact of Cohort Size on Education and Labor Earnings." Journal of Human Resources 21(4):543-562.
The paper analyzes three models of labor demand solving for the change in wages of a given labor group due to a change in the size of a birth cohort. When the production function includes age-schooling groups as separate factors, an increase in the size of one birth cohort changes the size of several labor market groups. Also, in this case, the demand effect of changing factor size is joined by a supply effect of changing schooling proportions. Ignoring the supply effect may cause us to overestimate the effect of a large birth cohort on wages of young skilled workers.
The author is an assistant professor of economics at Bowdoin College. She is grateful to Mark Berger, Ren Farley, George Johnson, Robert Kleinbaum, Eva Mueller, Gary Solon, Frank Stafford, and three anonymous referees for helpful comments. This research was supported in part by a NICH Economic Demography Training Grant to the University of Michigan. The Population Association of America named this paper co-winner of the 1986 Dorothy S. Thomas Award for the best doctoral student paper in the field of population.
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