FIGURE 4.5 Mean percentage change in wages for displaced workers who found new jobs, as of 1994, 1996, and 1998. SOURCE: U.S. Department of Labor, Current Population Survey: Displaced Workers Supplement, 1994, 1996, 1998.

percent for older displaced non-IT workers (a difference of 6 percent in favor of IT workers). These differences are consistent with the tight labor market in IT, which should result in wage gains or smaller wage losses for Category 1 IT workers since IT employers have to pay more to hire displaced IT workers.

4.3.3 The AARP Audit Study

Because it is essential to account for differences in skills between workers when investigating discrimination (of any kind), many experts turn to experiments, called “audit studies,” in which pairs of equally qualified individuals, who differ only by one characteristic (such as age),

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