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Ballarino, Gabriele, Stefano Cantalini & Nazareno Panichella (2021): Social origin and compensation patterns over the occupational career in Italy. In: Acta sociologica, Jg. 64, H. 2, S. 166-183. DOI:10.1177/0001699320920917

Abstract

"This paper studies dynamically the direct effect of social origin on occupational destinations among men in Italy over the career. It aims at investigating the existence, the pattern over time and the heterogeneity of differences in occupational achievement related to social origins, net of education (DESO) and occupational allocation at first job. It also analyses if the change of the DESO over the career is related to the effect of specific job change episodes (voluntary job change, involuntary job change, internal career move). Results based on growth curve models show the relevance of first job in shaping the DESO, which also slightly increases over the career. The DESO is stronger among highly educated individuals, confirming a boosting pattern primarily driven by a better allocation at first job. The (smaller) DESO among the low-educated, increasing over the career, depends from the higher probabilities to benefit from voluntary and internal career job changes for the children of the service class. The (stronger) DESO among the highly educated is driven by the higher probabilities of experiencing internal career mobility for the children of the service class as well as by their ability to benefit also from an involuntary job change (e.g. dismissal)." (Author's abstract, IAB-Doku) ((en))

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Bonhomme, Stephane, Kerstin Holzheu, Thibaut Lamadon, Elena Manresa, Magne Mogstad & Bradley Setzler (2021): How much should we trust estimates of firm effects and worker sorting? (Working papers / Institute for Evaluation of Labour Market and Education Policy 2021,20), Uppsala, 76 S.

Abstract

"Many studies use matched employer-employee data to estimate a statistical model of earnings determination where log-earnings are expressed as the sum of worker effects, firm effects, covariates, and idiosyncratic error terms. Estimates based on this model have produced two influential yet controversial conclusions. First, firm effects typically explain around 20% of the variance of log-earnings, pointing to the importance of firm-specific wage-setting for earnings inequality. Second, the correlation between firm and worker effects is often small and sometimes negative, indicating little if any sorting of high-wage workers to high-paying firms. The objective of this paper is to assess the sensitivity of these conclusions to the biases that arise because of limited mobility of workers across firms. We use employer-employee data from the US and several European countries while taking advantage of both fixed-effects and random-effects methods for bias-correction. We find that limited mobility bias is severe and that bias-correction is important. Once one corrects for limited mobility bias, firm effects dispersion matters less for earnings inequality and worker sorting becomes always positive and typically strong." (Author's abstract, IAB-Doku) ((en))

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Carrillo-Tudela, Carlos, Alex Clymo & Melvyn Coles (2021): Equilibrium Job Turnover and the Business Cycle. (IZA discussion paper 14869), Bonn, 65 S.

Abstract

"This paper develops and estimates a fully microfounded equilibrium business cycle model of the US labor market with aggregate productivity shocks. Those microfoundations are consistent with evidence regarding the underlying distribution of firm growth rates across firms [by age and size] and, when aggregated, are consistent with macro-evidence regarding gross job creation and job destruction flows over the cycle. By additionally incorporating on-the-job search, we systematically characterise the stochastic relationships between aggregate job creation and job destruction flows across firms, gross hire and quit flows [churning] by workers across firms, as well as the persistence and volatility of unemployment and worker job finding rates over the cycle." (Author's abstract, IAB-Doku) ((en))

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Criscuolo, Chiara, Alexander Hijzen, Michael Koelle, Cyrille Schwellnus, Erling Barth, Wen-Hao Chen, Richard Fabling, Priscilla Fialho, Alfred Garloff, Katharzyna Grabska, Ryo Kambayashi, Valerie Lankester, Balazs Stadler, Oskar Nordström Skans, Satu Nurmi, Balazs Murakozy, Richard Upward & Wouter Zwysen (2021): The firm-level link between productivity dispersion and wage inequality: A symptom of low job mobility? (OECD Economics Department working papers 1656), Paris, 45 S. DOI:10.1787/4c6131e3-en

Abstract

"Differences in average wages across firms – which account for around one-half of overall wage inequality – are mainly explained by differences in firm wage premia (the part of wages that depends exclusively on characteristics of firms) rather than workforce composition. Using a new cross-country dataset of linked employer-employee data, this paper investigates the role of cross-firm dispersion in productivity in explaining dispersion in firm wage premia, as well as the factors shaping the link between productivity and wages at the firm level. The results suggest that around 15% of cross-firm differences in productivity are passed on to differences in firm wage premia. The degree of pass-through is systematically larger in countries and industries with more limited job mobility, where low-productivity firms can afford to pay lower wage premia relative to high-productivity ones without a substantial fraction of workers quitting their jobs. Stronger product market competition raises pass-through while more centralised bargaining and higher minimum wages constrain firm-level wage setting at any given level of productivity dispersion. From a policy perspective, the results suggest that the key priority should be to promote job mobility, which would reduce wage differences between firms while easing the efficient reallocation of workers across them." (Author's abstract, IAB-Doku) ((en))

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Czaller, László, Rikard H. Eriksson & Balázs Lengyel (2021): Reducing automation risk through career mobility. Where and for whom? In: Papers in Regional Science, Jg. 100, H. 6, S. 1545-1569. DOI:10.1111/pirs.12635

Abstract

"Automation risk prevails less in large cities compared to small cities but little is known about the drivers of this emerging urban phenomenon. A major challenge is that automation risk is quantified by work-related tasks that allows for measurement through occupation, which is in turn implicitly related to local economic structure and to individual career paths. This paper examines the role of working in cities on changes in automation risk through individual career mobility. Using panel data on Swedish workers, we show that the metropolitan effect of reducing automation risk is mainly induced through inter-firm job mobility. Separate estimates for different groups show that this effect accrues mostly to native, high-skilled and male workers." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

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Engzell, Per & Nathan Wilmers (2021): Firms and the Intergenerational Transmission of Labor Market Advantage. (SocArXiv papers), 62 S. DOI:10.31235/osf.io/mv3e9

Abstract

"Recent research finds that pay inequality stems both from firm pay-setting and from workers’ individual characteristics. Yet, intergenerational mobility research remains focused on transmission of individual traits, and has failed to test how firms shape the inheritance of inequality. We study this question using three decades of Swedish population register data, and decompose the intergenerational earnings correlation into firm pay premiums and stable worker effects. One quarter of the intergenerational earnings correlation at midlife is explained by sorting between firms with unequal pay. Employer or industry inheritance account for a surprisingly small share of this firm-based earnings transmission. Instead, children from high-income backgrounds benefit from matching with high-paying firms irrespective of the sources of parents’ earnings advantage. Our analysis reveals how an imperfectly competitive labor market provides an opening for skill-based rewards in one generation to become class-based advantages in the next." (Author's abstract, IAB-Doku) ((en))

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Fallick, Bruce, John C. Haltiwanger, Erika McEntarfer & Matthew Staiger (2021): Job Displacement and Job Mobility: The Role of Joblessness. (NBER working paper 29187), Cambridge, Mass, 51 S. DOI:10.3386/w29187

Abstract

"Who is harmed by and who benefits from worker reallocation? We investigate the earnings consequences of changing jobs and find a wide dispersion in outcomes. This dispersion is driven not by whether the worker was displaced, but by the duration of joblessness between job spells. Job movers who experience joblessness suffer a persistent reduction in earnings and tend to move to lower-paying firms, suggesting that job ladder models offer a useful lens through which to understand the negative consequences of job separations." (Author's abstract, IAB-Doku) ((en))

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Halvorsen, Elin, Serdar Ozkan & Sergio Salgado (2021): Earnings Dynamics and Its Intergenerational Transmission: Evidence from Norway. (Working paper / Federal Reserve Bank of St. Louis 2021,15), Saint Louis, MO, 70 S. DOI:10.20955/wp.2021.015

Abstract

"Using administrative data from Norway, we first present stylized facts on labor earnings dynamics between 1993 and 2017 and its heterogeneity across narrow population groups. We then investigate the parents' role in children's income dynamics—the intergenerational transmission of income dynamics. We find that children of high-income, high-wealth fathers enjoy steeper income growth over the life cycle and face more volatile but more positively skewed income changes, suggesting that they are more likely to pursue high-return, high-risk careers. Children of poorer fathers also face more volatile incomes, but theirs grow more gradually and are more left skewed. Furthermore, the income dynamics of fathers and children are strongly correlated. In particular, children of fathers with steeper life-cycle income growth, more volatile incomes, or higher downside risk also have income streams of similar properties. We also confirm that fathers' significant role in workers' income dynamics is not simply spurious because of omitted variables, such as workers' own permanent income. These findings shed new light on the determinants of intergenerational mobility." (Author's abstract, IAB-Doku) ((en))

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Kenedi, Gustave & Louis Sirugue (2021): The Anatomy of Intergenerational Income Mobility in France and its Spatial Variations. (PSE working paper / Paris School of Economics 2021-59 halshs-03455282), Paris, 83 S.

Abstract

"We provide new estimates of intergenerational income mobility in France for children born in the 1970s using rich administrative data. Since parents' incomes are not observed, we employ a two-sample two-stage least squares estimation procedure. At the national level, every measure of intergenerational income persistence (intergenerational elasticities, rank-rank correlations, and transition matrices) suggests that France is characterized by relatively strong persistence relative to other developed countries. Children born to parents in the bottom 20% of their income distribution have a 10.1% probability of reaching the top 20% as adults. This probability is of 39.1% for children born to parents in the top 20%. At the local level, we find substantial spatial variations in intergenerational mobility. It is higher in the West of France and particularly low in the North and in the South. We uncover significant relationships between absolute upward mobility and characteristics of the environment an individual grew up in, such as the unemployment rate, population density, and income inequality." (Author's abstract, IAB-Doku) ((en))

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Kiersztyn, Anna (2021): Who moves from fixed-term to open-ended contracts? Youth employment transitions in a segmented labour market. In: Acta sociologica, Jg. 64, H. 2, S. 198-214. DOI:10.1177/0001699320920910

Abstract

"This article explores the career effects of fixed-term employment among Polish youth, taking into account specific legal and institutional arrangements affecting both the incidence of temporary jobs and the chances of moving into more stable employment contracts. The aim of the analysis is twofold. First, it seeks to assess whether temporary contracts serve as a stepping-stone to stable employment or a trap leading to fragmented careers consisting of recurrent short-term jobs. Second, it identifies the factors which increase the chances of successful labour market integration. Both issues are addressed through a quantitative analysis of retrospective career data for a cohort of respondents aged 21-30 from two waves of the Polish Panel Survey (POLPAN), 2008 and 2013. Results suggest that temporary employment is not restricted to entry-level jobs and acts as a trap rather than a stepping-stone. In addition, the opportunities for moving from fixed-term to open-ended contracts appear to have deteriorated over the years. However, gaining early on-the-job experience, especially in occupations involving highly complex tasks, may improve the chances of attaining job stability." (Author's abstract, IAB-Doku) ((en))

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Maczulskij, Terhi (2021): Occupational Mobility of Routine Workers. (ETLA working papers 87), Helsinki, 40 S.

Abstract

"This paper analyzes whether occupational polarization takes place within workers or due to changes in the composition of workers by using comprehensive panel data from Finland. The decomposition analysis shows that the decrease in mid-level routine occupations and the simultaneous increase in high-level abstract occupations is largely a within-worker phenomenon. In contrast, the share of low-skilled nonroutine manual tasks has largely increased through entry dynamics. Data on plant closures are used to identify involuntary separations from routine occupations. These results demonstrate a strong, uneven adjustment pattern, with routine cognitive workers being more able to move to abstract tasks and adjust with smaller wage costs than routine manual workers." (Author's abstract, IAB-Doku) ((en))

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Pohlig, Matthias (2021): Occupational mobility in Europe during the crisis. Did the social elevator break? In: Research in Social Stratification and Mobility, Jg. 72, S. 1-16. DOI:10.1016/j.rssm.2020.100549

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Richardson, Nela & Sara Klein (2021): People at Work 2021: A Global Workforce View. Roseland, 48 S.

Abstract

"This report provides a starting point to understand the situation facing employees today across five dimensions of working life: worker confidence and job security; workplace conditions; pay and performance; worker mobility; and gender and family." (Author's abstract, IAB-Doku) ((en))

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Salvanes, Kjell G., Barton Willage & Alexander L. P. Willén (2021): The Effect of Labor Market Shocks across the Life Cycle. (CESifo working paper 9491), München, 65 S.

Abstract

"Adverse economic shocks occur frequently and may cause individuals to reevaluate key life decisions in ways that have lasting consequences for themselves and the economy. These life decisions are fundamentally tied to specific periods of an individual's career, and economic shocks may therefore have substantially different impacts on individuals – and the broader economy - depending on when they occur. We exploit mass layoffs and establishment closures to examine the impact of adverse shocks across the life cycle on labor market outcomes and major life decisions: human capital investment, mobility, family structure, and retirement. Our results reveal substantial heterogeneity on labor market effects and life decisions in response to economic shocks across the life cycle. Individuals at the beginning of their careers invest in human capital and relocate to new labor markets, individuals in the middle of their careers reduce fertility and adjust family formation decisions, and individuals at the end of their careers permanently exit the workforce and retire. As a consequence of the differential interactions between economic shocks and life decisions, the very long-term career implications of labor shocks vary considerably depending on when the shock occurs. We conclude that effects of adverse labor shocks are both more varied and more extensive than has previously been recognized, and that focusing on average effects among workers across the life cycle misses a great deal." (Author's abstract, IAB-Doku) ((en))

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Silva, Marta & Jose Garcia-Louzao (2021): Coworker Networks and the Labor Market Outcomes of Displaced Workers: Evidence from Portugal. (Working paper series / Lietuvos Bankas 95), Vilnius, 36 S.

Abstract

"The use of social contacts in the labor market is widespread. This paper investigates the impact of personal connections on hiring probabilities and re-employment outcomes of displaced workers in Portugal. We rely on rich matched employer-employee data to define personal connections that arise from interactions at the workplace. Our empirical strategy exploits firm closures to select workers who are exogenously forced to search for a new job and leverages variation across displaced workers with direct connections to prospective employers. The hiring analysis indicates that displaced workers with a direct link to a firm through a former coworker are roughly three times more likely to be hired compared to workers displaced from the same closing event who lack such a tie. However, we find that the effect varies according to the type of connection as well as firms' similarity. Finally, we show that successful displaced workers with a connection in the hiring firm have higher entry-level wages and enjoy greater job security although these advantages disappear over time." (Author's abstract, IAB-Doku) ((en))

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Westerman, Johan, Dirk Witteveen, Erik Bihagen & Roujman Shahbazian (2021): Career Complexity No Longer on the Rise. Comparing Early-and Mid-Career Complexity Across the 1930s thru 1980s Birth Cohortsin Sweden. (SocArXiv papers), 43 S. DOI:10.31235/osf.io/md4t3

Abstract

"There is a wide-spread idea that contemporary careers continue to become ever more complex. Pioneering research of full-career complexity has shown that work lives have indeed become more complex, yet at modest increasing pace. This paper examines whether career complexity continues to increase using Swedish registry data across an exceptionally long time period, including younger cohorts than in previous research: up to those born in 1983. The full early-and mid-careers of selected birth cohorts cover several macroeconomic booms and downturns, a long period of upskilling of the Swedish labor force, as well as the convergence of working hours of women and men. The following conclusions are drawn using state-of-the-art methods of measuring career complexity. For early-careers, an increasing complexity trend is evident between the 1950s and 1960s birth cohorts, yet complexity fluctuates around a stable trend for the 1970s birth cohorts and onward. For mid-careers, which are considerably more stable on average, complexity has decreased among women born between the 1930s and the early-1950s. However, the opposite trend holds true for men, resulting in gender convergence of complexity. We observe a standstill of the mid-career complexity trend across both genders, followed by a modest decline for the last observed cohorts. Subsequent analyses point to educational expansion as an important driver of the initial increase of early-career complexity. Taken together, our analysis affirms an initial shift to more career complexity in the 20thcentury, yet we find no unidirectional trend toward more career complexity over the last decades." (Author's abstract, IAB-Doku) ((en))

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Westerman, Johan (2021): Should I Learn or Should I Turn? Implications of Job Mobility for Subsequent Learning at Work. In: European Sociological Review, Jg. 37, H. 6, S. 935-951. DOI:10.1093/esr/jcab018

Abstract

"Work learning is the skills and the knowledge that is generated from work practices and in exchange of information at work. While there are good reasons to fear that frequent job changers do not learn thoroughly at work, it is also conceivable that the experience of many types of jobs instead yields greater learning. Despite this issue’s significance for on-going discussions in research and policy, thorough analyses of it are surprisingly sparse. In this study, we test whether job mobility is positively or negatively associated with subsequent work learning using data from two Swedish representative datasets (LNU and PIAAC). In order to substantiate both claims, we utilize a wide array of research on human capital, job matching, labor market segmentation and learning motivation. We analyze a broad set of indicators of work learning and show that job mobility in general is associated with greater total subsequent learning than is job stability." (Author's abstract, IAB-Doku) ((en))

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Bukodi, Erzsébet & Marii Paskov (2020): Intergenerational Class Mobility among Men and Women in Europe: Gender Differences or Gender Similarities? In: European Sociological Review, Jg. 36, H. 4, S. 495-512. DOI:10.1093/esr/jcaa001

Abstract

"In this article, we address two inter-related questions. Are there gender differences in the level and the pattern of intergenerational class mobility? If so, do these differences show up in a uniform fashion in Europe? To answer these questions, we use a newly constructed comparative data set that allows us to examine how far differences between men and women in absolute and relative mobility can still be characterized in the same way as in the last decades of the 20th century. We also examine the effects of women's heterogeneity in terms of labour market attachment on their class mobility. Our results show that in most countries, women are more likely than men to be found in different class positions to those of their parents'. But we point out that the reasons for this might be quite different in the West and in the East. As regards relative mobility chances, we are able to underwrite the dominant finding of past research that women display greater social fluidity than men only in a certain group of countries. In most countries, we do not find any systematic and uniform gender difference between men and women in the level of their relative mobility rates. But, we do find significant and systematic gender differences in the pattern of relative rates: women's class mobility appears to be more impeded by hierarchical barriers than by the propensity for class inheritance. And, in this regard, our findings point to a large degree of commonality across European countries." (Author's abstract, IAB-Doku) ((en))

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Chassamboulli, Andri, Idriss Fontaine & Pedro Gomes (2020): How important are worker gross flows between public and private sector? In: Economics Letters, Jg. 192. DOI:10.1016/j.econlet.2020.109204

Abstract

"We measure the size of gross worker flows between public and private sector and their importance for the dynamics of public employment over the last two decades in the US, UK, France and Spain. Between 10 and 35 percent of all inflows and outflows of the public sector are from and to private employment. These flows only account for 7 to 25 percent of the fluctuations of public employment." (Author's abstract, IAB-Doku, © 2020 Elsevier) ((en))

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Cheng, Siwei & Barum Park (2020): Flows and Boundaries: A Network Approach to Studying Occupational Mobility in the Labor Market. In: American journal of sociology, Jg. 126, H. 3, S. 577-631. DOI:10.1086/712406

Abstract

"Although stratification research has long recognized the importance of mapping out the underlying boundaries that govern the flow of workers in the labor market, the current literature faces two major challenges: (1) the determination of mobility boundaries and (2) the incorporation of changes in mobility boundaries. The authors propose a network approach to address these challenges. The approach conceptualizes the occupational system as a network, in which the nodes are occupations and the edges are defined by the volume and direction of workers who move between the nodes. A flow-based community detection algorithm is introduced to uncover mobility boundaries based on the observed mobility network. Applying this approach to analyze trends in intragenerational occupational mobility in the United States from 1989 to 2015, the authors find that the boundaries that constrain mobility opportunities have become increasingly rigid over time, while, at the same time, decoupled from the boundaries of big classes and microclasses. Moreover, these boundaries are increasingly sorting workers into clusters of occupations with similar skill requirements." (Author's abstract, IAB-Doku) ((en))