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Does attracting or losing jobs in high paying sectors have important spill-over effects on wages in other sectors? The … relationship between changes in industry-specific city-level wages and changes in industrial composition. Our finding is that the … very substantial and persistent. Our point estimates indicate that the total effect on average wages of a change in …
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"The standard neo-classical model of wage setting predicts short-term effects of temporary labor market shocks on careers and low costs of recessions for both more and less advantaged workers. In contrast, a vast range of alternative career models based on frictions in the labor market suggests...
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