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Alves, Felipe (2022): Job Ladder and Business Cycles. (Staff working paper / Bank of Canada 2022,14), Ottawa, 44 S.

Abstract

"I build a Heterogeneous Agents New Keynesian model with rich labor market dynamics. Workers search both off- and on-the-job, giving rise to a job ladder, where employed workers slowly move toward more productive and better paying jobs through job-to-job transitions, while negative shocks occasionally throw them back into unemployment. The state of the economy includes the distribution of workers over wealth, labor earnings and match productivities. In the wake of an adverse financial shock calibrated to mimic the US Great Recession unemployment dynamics, firms reduce hiring, causing the job ladder to all but “stop working.” This leaves wages stagnant for several years, triggering a sharp contraction and slow recovery in consumption and output. On the supply side, the slow pace in worker turnover leaves workers stuck at the bottom of the ladder, effectively cutting labor productivity growth in the aggregate. The interaction between weak demand and low productivity leads to inflation dynamics that resemble the missing disinflation of that period." (Author's abstract, IAB-Doku) ((en))

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Andresen, Maike, Silke Anger, Akram Al Ariss, Cordula Barzantny, Herbert Brücker, Michael Dickmann, Liisa Mäkelä, Sara Louise Muhr, Thomas Saalfeld, Vesa Suutari & Mette Zølner (Hrsg.) (2022): Wanderlust to wonderland? Exploring key issues in expatriate careers: Individual, organizational, and societal insights. (Personalmanagement und Arbeits- und Organisationspsychologie 2), Bamberg: University of Bamberg Press, 292 S. DOI:10.20378/irb-55344

Abstract

"Expatriation has been a topic of much research recently. The important role expatriates play in the internationalisation of an organisation and the resultant effects of such a work experience on the expatriates themselves, have fuelled the interest in this domain. This edited volume serves to provide fresh and timely insights into four areas, covering the individual, over the organisational, to the macro-level. First, the career paths of the expatriates, which not only garners them the career capital they may be able to utilise later in their career but also, the impacts of such an experience on their longer-term career success are in focus. The second block concerns the expatriation phase itself. A critical look is taken into the expatriates’ identity and how it changes over time. Moreover, it discusses factors influencing the expatriates’ well-being, embeddedness, and sociocultural integration during their time abroad. Third, some key global mobility management challenges that organisations face, when managing expatriation, are introduced — such as flexible language management and how to become an international employer. Finally, insights are provided into the role of the host country policies – more specifically hostile environment and migration policies – on expatriate attitudes and behaviour, which has received less attention in previous research. All four areas are finally brought together to present a rich overview of future research questions that shall stimulate researchers and practitioners in their further deliberations. The chapters are based on selected results from the respective research subprojects of the Early Stage Researchers of the Horizon 2020 Global Mobility of Employees (GLOMO) project. This project was funded under the European Union’s Research and Innovation Programme H2020 in the framework of the Marie Skłodowska-Curie Grant Agreement No 765355." (Author's abstract, IAB-Doku, © University of Bamberg Press) ((en))

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Berger, Johannes & Ludwig Strohner (2022): Can labour mobility reduce imbalances in the euro area? (Research paper / EcoAustria - Institut für Wirtschaftsforschung 20), Wien, 25 S.

Abstract

"Labour market developments in the Euro area diverged significantly since 2008. Economic literature frequently refers to labour mobility as pillar for the functioning of currency areas. Applying the CGE model PuMA, we quantitatively analyse to what extent labour mobility can contribute to reducing imbalances within the Euro area. Our results indicate that it can temporarily reduce unemployment and increase wages in periphery countries at the cost of somewhat higher unemployment in receiving countries. Overall, economic outcomes improve slightly. Although labour mobility has a positive effect on labour market imbalances, it cannot be seen as substitute for structural reforms." (Author's abstract, IAB-Doku) ((en))

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Bettoni, Luis G. & Marcelo R. Santos (2022): Public sector employment and aggregate fluctuations. In: Journal of macroeconomics, Jg. 72. DOI:10.1016/j.jmacro.2022.103418

Abstract

"An important stylized fact about public sector employment is that it predominantly hires skilled and more experienced workers. In this paper, we consider a search and matching model with public sector and on-the-job human capital accumulation that incorporates this stylized fact to study how the public sector employment affects the labor market volatility. In the model, public sector employment affects aggregate fluctuations by changing the composition of workers employed in the private sector. Because workers accumulate human capital and become more productive when employed, the flow of benefits from forming a match are spread over time. In this environment, if the flow into the public sector increases with human capital, then the government hiring policy decreases the firm’s benefit of hiring and the matching surplus, increasing the responsiveness of labor market tightness to shocks. We calibrate the model for the Brazilian economy and show that this mechanism amplifies the effects of public employment on vacancy creation and private sector employment volatility." (Author's abstract, IAB-Doku, © 2022 Elsevier) ((en))

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Borowczyk-Martins, Daniel (2022): Employer-to-employer Transitions in Europe. (Working paper / Department of Economics, Copenhagen Business School 2022,04), Frederiksberg, 37 S.

Abstract

"I measure time series of the probabilities that an individual changes employer, separates from employment, and joins employment during the month, using cross-sectional data from the European Union Labor Force Survey covering 13 countries during the past two decades. Employer-to-employer mobility is large and accounts for a sizable fraction of worker mobility in all countries; its levels, both absolute and relative to nonemployment reallocation, vary considerably across countries. In most countries, the employer-to-employer probability exhibits large and procyclical variation. By contrast, there are no systematic cross-country patterns in the low-frequency evolution of employer-to-employer mobility." (Author's abstract, IAB-Doku) ((en))

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Causa, Orsetta, Michael Abendschein, Nhung Luu & Maria Chiara Cavalleri (2022): Getting on the job ladder: The policy drivers of hiring transitions. (OECD Economics Department working papers 1710), Paris, 88 S.

Abstract

"This paper delivers new evidence for European countries on the role of a wide range of policies for workers' mobility in terms of hiring transitions into jobs, with an emphasis on differences across socio-economic groups. Labour market transitions are relevant in the current context where the ongoing recovery from the COVID-19 crisis is characterised by labour shortages and at the same time still low employment in a number of countries. The analysis focuses on the probability to transition from unemployment and selected forms of inactivity (e.g. fulfilling domestic tasks, studying) to jobs and from one job to another. Results of this work show the strong association between hiring flows and the business cycle with specific patterns during recoveries, recessions and expansions. The analysis further reveals that a broad range of policies influence hiring transitions, such as labour market policies, taxes and social support programmes but also product market regulations and regulations affecting certain professions. Country-specific priorities will vary depending on context, challenges and social preferences. Yet common policy objectives at the current recovery context are likely to improve the job prospects of the non-employed, especially youth, low-skilled and women, to help the recovery, foster reallocation and to address labour shortages." (Author's abstract, IAB-Doku) ((en))

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Deng, Lanfang, Hongyi Li & Wei Shi (2022): Willingness for different job mobility types and wage expectations. An empirical analysis based on the online resumes. In: Papers in Regional Science, Jg. 101, H. 1, S. 135-161. DOI:10.1111/pirs.12636

Abstract

"In this paper, we study different determinants of the intentions of multi-dimensional job mobility and potential consequences on the expected wage, allowing for multiple types of moves, including location, industry, and occupation, and different combinations of these three dimensions. Our results confirm that the same observable characteristics can lead to different or even completely opposite effects on job mobility intentions. To be specific, on-the-job seekers (compared to unemployed ones) and job seekers with management positions in their last jobs both have a higher willingness to change job locations, but they are less willing to change industries and occupations. Moreover, our results demonstrate that the relationship between job mobility and wage expectations highly depends on the combinations of different mobility dimensions. Specifically, potential geographic mobility positively impacts wage expectations, with an increase of the expected wage by 6.3%. However, changing industry, occupation, or both results in a lower expected wage by 3.7%, 1.6%, and 11%, respectively. The wage expectation of the “All change” group does not significantly differ from the cohort of non-movers (i.e., “No change”), implying that geographic moves could only partially offset the adverse effects of switching both occupation and industry." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

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Engbom, Niklas (2022): Labor Market Fluidity and Human Capital Accumulation. (NBER working paper 29698), Cambridge, Mass, 70 S. DOI:10.3386/w29698

Abstract

"Using panel data from 23 OECD countries, I document that wages grow more over the life-cycle in countries where job-to-job mobility is more common. A life-cycle theory of job shopping and accumulation of skills on the job highlights that a more fluid labor market allows workers to faster relocate to jobs where they can better use their skills, incentivizing accumulation of skills. Lower labor market fluidity reduces life-cycle wage growth by 20 percent and aggregate labor productivity by nine percent across the OECD relative to the US. I derive a set of testable predictions for training and confront them with comparable cross-country training data, finding support for the theory." (Author's abstract, IAB-Doku) ((en))

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Fritsch, Nina-Sophie, Bernd Liedl & Gerhard Paulinger (2022): Horizontal and vertical labour market movements in Austria: Do occupational transitions take women across gendered lines? In: Current Sociology, Jg. 70, H. 5, S. 720-741. DOI:10.1177/0011392120969767

Abstract

"The gendered division of occupations is a persistent characteristic of the Austrian labour market. Furthermore, we can observe more flexible employment biographies, where sequential employment episodes and occupational transitions become an important part. On this account, the article argues that both gender inequalities and labour market movements need to be examined simultaneously. The authors therefore analyse gender-(un)typed horizontal occupational transitions and their influence on the vertical positioning, based on the Austrian Micro Census (2008–2018). The results reveal that gender-typed occupational transitions are regaining relevance and that the gender effect is reversing in that women increasingly leave gender-untyped occupations. The findings also demonstrate that this gender-typed horizontal movement yields a significant decline in occupational status for women, which even increases when women become mothers. Based on their models the authors find no negative effects for fathers." (Author's abstract, IAB-Doku) ((en))

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Moawad, Jad (2022): Labour market prospects of young adults in Europe: differential effects of social origin during the Great Recession. In: European Societies, Jg. 24, H. 5, S. 521-547. DOI:10.1080/14616696.2022.2043409

Abstract

"Research on the direct effect of social origin (DESO) focuses on how background influences later labour market outcomes after accounting for education. Growing up in a household of low social origin might decrease the chances of certain future outcomes; however, the extent to which this matters is contingent on the economic cycle. Using the EU Statistics on Income and Living Conditions (EU-SILC) and the European Social Survey (ESS) between 2002 and 2014, we analyse whether the gap in the DESO in terms of employment and earnings widened following the Great Recession for young adults (25-34) in France, Germany, Italy, Poland, Spain and the United Kingdom. Our results suggest that young adults of high social origin faced more disadvantages in terms of employment than young adults of low social origin in France, Spain and the United Kingdom. On the other hand, analyses show that young adults of low social origin experienced more disadvantages in terms of earnings than their counterparts of high social origin in Spain." (Author's abstract, IAB-Doku) ((en))

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Riekhoff, Aart-Jan (2022): Good or bad (in)stability? A cross-cohort study of the relation between career stability and earnings mobility in Finland. In: Research in Social Stratification and Mobility, Jg. 77. DOI:10.1016/j.rssm.2022.100674

Abstract

"Although recent studies have found no signs of drastic destabilisation of employment and careers, it is possible that the returns of having a stable or unstable career have changed. This study looks at the link between early-career stability and earnings mobility in Finland: 1) What are the size and direction of the relations between various indicators of career stability and earnings mobility in early working life, and 2) Have these relations changed across cohorts? It uses longitudinal register data of earnings and employment from the Finnish Centre for Pensions, covering cohorts born between 1940 and 1980 for the years 1963–2019 (5396 individuals and 72,578 observations). Growth curve models are applied where repeated observations between the ages 23 and 39 are nested within individuals. Earnings are regressed on three types of career stability indicators: cumulative time in non-employment, tenure with the current employer and the cumulative job changes. Results show overall negative associations of earnings with career breaks and positive associations with tenure and job transitions, but also some differences in these associations by gender and education levels. The link between the career stability indicators and earnings mobility is relatively similar across cohorts, with few exceptions. The positive relation with tenure has decreased and even turned negative for women. Moreover, economic crisis in the early 1990s might have presented a temporary shock to the relation between career breaks and job changes on the one hand, and earnings mobility on the other." (Author's abstract, IAB-Doku, © 2022 Elsevier) ((en))

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Torre, Margarita (2022): The Scarring Effect of "Women’s Work". The Determinants of Women’s Attrition from Male-dominated Occupations. (OSF preprints), 47 S.

Abstract

"Women's entry into formerly male-dominated occupations has increased in recent decades, yet a significant outflow remains. This study examines the determinants of women's exits from male-dominated occupations, focusing on the effect of previous occupational trajectories. In particular, it hypothesizes that occupational trajectories in female-dominated occupations are often imbued with meanings and beliefs about the (in)appropriateness of the worker, which adversely affect women's integration and chances when they enter the male sector. Using the NLSY79 data set, the study analyzes the job histories of women employed in the United States between 1979 and 2006. The results reveal a disproportionate risk of exit among newcomers from female-dominated occupations. Also, women who reenter the male field are more likely to leave it again. Altogether, the findings challenge explanations based on deficiencies in the information available to women at the moment of hiring. The evidence points to the existence of a “scar effect” of previous work in the female field, which hinders women's opportunities in the male sector and ends up increasing the likelihood of exit." (Author's abstract, IAB-Doku) ((en))

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Wilmers, Nathan & William Kimball (2022): How Internal Hiring Affects Occupational Stratification. In: Social forces, Jg. 101, H. 1, S. 111-149. DOI:10.1093/sf/soab131

Abstract

"When employers conduct more internal hiring, does this facilitate upward mobility for low-paid workers or does it protect the already advantaged? To assess the effect of within-employer job mobility on occupational stratification, we develop a framework that accounts for inequality in both rates and payoffs of job changing. Internal hiring facilitates advancement for workers without strong credentials, but it excludes workers at employers with few good jobs to advance into. Analyzing Current Population Survey data, we find that when internal hiring increases in a local labor market, it facilitates upward mobility less than when external hiring increases. When workers in low-paid occupations switch jobs, they benefit more from switching employers than from moving jobs within the same employer. One-third of this difference is due to low-paid workers isolated in industries with few high-paying jobs to transfer into. An occupationally segregated labor market therefore limits the benefits that internal hiring can bring to the workers who most need upward mobility." (Author's abstract, IAB-Doku) ((en))

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Witteveen, Dirk (2022): Parental Over- and Undereducation and Offspring Earnings. (SocArXiv papers), 35 S. DOI:10.31235/osf.io/p9d36

Abstract

"The ORU model has become one of the most accustomed ways to measure the joint impact of required level of education of the job and the education-occupation matching of the worker on their earnings. The broader implications of overeducation and undereducation for socio-economic stratification are however less straightforward. This study contributes to our understanding of the long-term and far-reaching consequences of education-occupation matching by estimating the ORU parameters of parents for the earnings levels of their offspring. After introduction of the “intergenerational ORU model,” we measure associations between parental ORU (overeducation, required education, and undereducation) and earnings among individuals during occupational maturity in the United States (using the NLSY79) and the United Kingdom (using the UKHLS). Results echo findings from the standard ORU model. Years of “matched education-occupation” (R) of the parents’ job increases offspring earnings by about 9.9% (US) and about 8.2% (UK), while years of parents’ “surplus occupation” (U) increases offspring earnings by about 4.0% (US) and about 3.7% (UK). We find a positive effect of “surplus education” (O) in the US, but not the UK. Similar to intergenerational mobility models, parental ORU estimates are moderated by offspring own education yet remain statistically significant. Further analyses explore gender differences in both generations. Implications for ORU research and intergenerational mobility research are discussed." (Author's abstract, IAB-Doku) ((en))

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Ahrsjö, Ulrika, René Karadakic & Joachim Kahr Rasmussen (2021): Intergenerational Mobility Trends and the Changing Role of Female Labor. (CEBI working paper series 2021,19), Copenhagen, 54 S.

Abstract

"We present new evidence on the existence and drivers of trends in intergenerational income mobility using administrative income data from Scandinavia along with survey data from the United States. Harmonizing the data from Sweden, Denmark and Norway, we first find that intergenerational rank associations in income have increased uniformly across Scandinavia for cohorts of children born between 1951 and 1979. These trends are robust to a large set of empirical specifications that are common in the associated literature. However, splitting the trends by gender, we find that father-son mobility has been stable in all three countries, while correlations involving females display substantial trends. Similar patterns are confirmed in the US data, albeit with slightly different timing. Utilizing information about individual occupation, education and income in the Scandinavian data, we find that intergenerational mobility in latent economic status has remained relatively constant for all gender combinations. This suggests that a gradual reduction in gender-specific labor market segregation, increased female labor force participation and increased female access to higher education has strengthened the signal value that maternal income carries about productivity passed on to children. Based on these results, we argue that the observed decline in intergenerational mobility in Scandinavia is consistent with a socially desirable development where female skills are increasingly valued at the labor market, and that the same is likely to be true also in the US." (Author's abstract, IAB-Doku) ((en))

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Bagger, Jesper, Espen R. Moen & Rune Majlund Vejlin (2021): Equilibrium Worker-Firm Allocations and the Deadweight Losses of Taxation. (IZA discussion paper 14865), Bonn, 57 S.

Abstract

"We analyse the deadweight losses of tax-induced labor misallocation in an equilibrium model of the labour market where workers search to climb a job ladder and firms post vacancies. Workers differ in abilities. Jobs differ in productivities and amenities. A planner uses affine tax functions to finance lump-sum transfers to all workers and unemployment benefits. The competitive search equilibrium maximizes after-tax utility subject to resource constraints and the tax policy. A higher tax rate distorts search effort, job ranking and vacancy creation. Distortions vary on the job ladder, but always result in deadweight losses. We calibrate the model using matched employer-employee data from Denmark. The marginal deadweight loss is 33 percent of the tax base, and primarily arise from distorted search effort and vacancy creation. Steeply rising deadweight losses from distorted vacancy creation imply that the deadweight loss in the calibrated economy exceeds those incurred by very inequality averse social planners." (Author's abstract, IAB-Doku) ((en))

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Balke, Neele & Thibaut Lamadon (2021): Productivity shocks, long-term contracts and earnings dynamics. (Working papers / Institute for Evaluation of Labour Market and Education Policy 2021,19), Uppsala, 78 S.

Abstract

"This paper examines how employer- and worker-specific productivity shocks transmit to earnings and employment in an economy with search frictions and firm commitment. We develop an equilibrium search model with worker and firm shocks and characterize the optimal contract offered by competing firms to attract and retain workers. In equilibrium, riskneutral firms provide only partial insurance against shocks to risk-averse workers and offer contingent contracts, where payments are backloaded in good times and frontloaded in bad times. We prove that there exists a unique spot target wage, which serves as an attraction point for smooth wage adjustments. The structural model is estimated on matched employer-employee data from Sweden. The estimates indicate that firms absorb persistent worker and firm shocks, with respective passthrough values of 27 and 11%, but price permanent worker differences, a large contributor (32%) to variations in wages. A large share of the earnings growth variance can be attributed to job mobility, which interacts with productivity shocks. We evaluate the effects of redistributive policies and find that almost 40% of government-provided insurance is undone by crowding out firm-provided insurance." (Author's abstract, IAB-Doku) ((en))

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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))

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Cubas, German & Pedro Silos (2020): Social Insurance And Occupational Mobility. In: International Economic Review, Jg. 61, H. 1, S. 219-240. DOI:10.1111/iere.12422

Abstract

"This article studies how insurance from progressive taxation improves the matching of workers to occupations. We propose an equilibrium dynamic assignment model to illustrate how social insurance encourages mobility. Workers experiment to find their best occupational fit in a process filled with uncertainty. Risk aversion and limited earnings insurance induce workers to remain in unfitting occupations. We estimate the model using microdata from the United States and Germany. Higher earnings uncertainty explains the U.S. higher mobility rate. When workers in the United States enjoy Germany's higher progressivity, mobility rises. Output and welfare gains are large." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

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Fernández-Lozano, Irina, M. José González, Teresa Jurado-Guerrero & Juan-Ignacio Martínez-Pastor (2020): The Hidden Cost of Flexibility: A Factorial Survey Experiment on Job Promotion. In: European Sociological Review, Jg. 36, H. 2, S. 265-283. DOI:10.1093/esr/jcz059

Abstract

"This article analyses the role of gender, parenthood, and work flexibility measures and the mediating role of stereotypes on the likelihood of achieving an internal promotion in Spain. We hypothesize that employers favour fathers over mothers and disfavour flexible workers (flexibility stigma) because they are perceived, respectively, as less competent and less committed. We also hypothesize that employers reflect their gender values in the selection process. These hypotheses are tested using data from a survey experiment in which 71 supervisors from private companies evaluate 426 short vignettes describing six different candidates for promotion into positions that require decision-making and team supervision skills. Several candidate characteristics are experimentally manipulated, while others such as skills and experience in the company are kept constant to minimize the risk of statistical discrimination. Contrary to our expectations, fathers are not preferred in promotion, as they are not perceived as being more competent than mothers. However, we find that flexibility leads to lower promotion scores, partly due to its association with a lack of commitment. Although the statutory right to reduce working hours for care reasons seems a major social achievement, this experiment shows that mothers may be indirectly penalized, as they are the main users of this policy." (Author's abstract, IAB-Doku) ((en))

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Hirsch, Boris, Elke Jahn & Thomas Zwick (2020): Birds, Birds, Birds: Co-Worker Similarity, Workplace Diversity and Job Switches. In: BJIR, Jg. 58, H. 3, S. 690-718., 2019-11-01. DOI:10.1111/bjir.12509

Abstract

"We investigate how the demographic composition of the workforce along the sex, nationality, education, age and tenure dimensions affects job switches. Fitting duration models for workers' job‐to‐job turnover rate that control for workplace fixed effects in a representative sample of large manufacturing plants in Germany during 1975 - 2016, we find that larger co‐worker similarity in all five dimensions substantially depresses job‐to‐job moves, whereas workplace diversity is of limited importance. In line with conventional wisdom, which has that birds of a feather flock together, our interpretation of the results is that workers prefer having co‐workers of their kind and place less value on diverse workplaces." (Author's abstract, Published by arrangement with John Wiley & Sons) ((en))

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Jenkins, Stephen P. (2020): Was the mid-2000s drop in the British job change rate genuine or a survey design effect? In: Economics Letters, Jg. 194. DOI:10.1016/j.econlet.2020.109383

Abstract

"The year-on-year job change rate fell sharply, from 18% in 2005 to around 13% in 2006, according to British Household Panel Survey (BHPS) estimates. This fall coincides with the introduction of dependent interviewing to the BHPS, intended to reduce measurement error and improve consistency. Estimates from models of job change misclassification (Hausman et al., 1998) show that reduced measurement error cannot account for the fall in the job change rate. This suggests that the fall was genuine." (Author's abstract, IAB-Doku, © 2020 Elsevier) ((en))

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Kosteas, Vasilios D. (2020): Occupational concentration and outcomes for displaced workers. In: Papers in Regional Science, Jg. 99, H. 4, S. 977-997. DOI:10.1111/pirs.12507

Abstract

"Displaced workers who end up changing occupations tend to suffer larger wage losses than those who do not. This paper examines the effect of the occupational concentration of employment in the local labour market (LLM) on the likelihood of being employed and (conditional on employment) having changed occupations for displaced workers. I find that workers who do not possess a postsecondary degree are less likely to be employed or to have changed occupations in more occupationally concentrated labour markets. By contrast occupational concentration does not affect these outcomes for more educated workers. These findings are consistent with a pattern where less educated workers focus job searches within their current LLM." (Author's abstract, IAB-Doku, Published by arrangement with John Wiley & Sons) ((en))

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Kourtellos, Andros, Christa Marr & Chih Ming Tan (2020): Local Intergenerational Mobility. In: European Economic Review, Jg. 126. DOI:10.1016/j.euroecorev.2020.103460

Abstract

"Using NLSY data we investigate whether the observed patterns of economic mobility (as measured by income and educational attainment) exhibit heterogeneity across socioeconomic groups and whether the nature of the heterogeneity can be explained by different levels of persistence in the intergenerational transmission of cognitive and non-cognitive abilities across these groups. In doing so we employ the varying coefficient model (VCM) to estimate nonparametric (local) measures of intergenerational mobility of those outcome variables. By local we mean that the persistence coefficients are modeled as smooth functions of log parental permanent income. Our findings show that intergenerational mobility exhibits nonlinear patterns. Individuals with different parental income are characterized by different degrees of intergenerational mobility. Moreover, we find evidence that suggests cognitive abilities play a role in explaining intergenerational mobility. These findings provide some support for a new class of family investment models that emphasize the role of such abilities in economic mobility." (Author's abstract, IAB-Doku, © 2020 Elsevier) ((en))

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Medici, Guri, Cécile Tschopp, Gudela Grote & Andreas Hirschi (2020): Grass roots of occupational change: Understanding mobility in vocational careers. In: Journal of vocational behavior, Jg. 122. DOI:10.1016/j.jvb.2020.103480

Abstract

"Most prior research on career mobility has focused on people changing jobs and organizations. We know little about processes involved in individuals changing occupations, although these changes cause high individual, organizational, and public costs. Moreover, occupations are increasingly acknowledged as important anchors in times of more boundaryless careers. The current study investigates the impact of early satisfaction with the trained occupation (VET satisfaction) on occupational change by analyzing 10-year longitudinal panel data gathered in Switzerland (N = 905). Results from regression analyses showed that VET satisfaction predicted occupational change up to ten years after graduation. VET satisfaction in turn was affected by work characteristics experienced during VET, and VET satisfaction mediated the relationship between work characteristics during VET and occupational change. Using a subsample (N = 464) for which data were available on jobs taken up after graduation, we showed that VET satisfaction explained occupational change over and above work satisfaction in jobs held after graduation, highlighting the formative role of early experience during VET. Our findings inform both theory and practice. To fully comprehend occupational change, established turnover models also need to reflect on early formative vocational experiences. Firms should pay attention to favorable work characteristics already during VET and adjust adverse conditions to reduce undesired occupational mobility." (Author's abstract, IAB-Doku, © 2021 Elsevier) ((en))

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Mussida, Chiara & Luca Zanin (2020): I found a better job opportunity! Voluntary job mobility of employees and temporary contracts before and after the great recession in France, Italy and Spain. In: Empirical economics, Jg. 59, H. 1, S. 47-98. DOI:10.1007/s00181-019-01622-7

Abstract

"The voluntary mobility of employees who change employers for a better job remains an unexplored area of labour market transitions in many European countries. We analyse whether and how the recent great economic recession has contributed to modifications in such voluntary job mobility when employees have a temporary contract in France, Italy and Spain. We analyse cross-sectional data from the EU-SILC survey for two sub-periods: 2005–2008 and 2009–2015. We find that employees who have invested in human capital, who are young and who work more than 40 h per week are more likely than their counterparts to change employers for a better opportunity given a temporary contract. After the great recession, we observe a curbing of the studied voluntary job mobility that is likely attributable to the difficulty experienced by employees in finding a job that provides more benefits than their current one, with heterogeneous effects across socio-economic and demographic characteristics and the country of residence." (Author's abstract, IAB-Doku, © Springer-Verlag) ((en))

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Simpson, Brent & David Melamed (2020): What do the upwardly mobile think they deserve, and why? A multi-method investigation. In: Research in Social Stratification and Mobility, Jg. 65. DOI:10.1016/j.rssm.2019.100459

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Stijepic, Damir (2020): Job mobility and sorting. Theory and evidence. In: Jahrbücher für Nationalökonomie und Statistik, Jg. 240, H. 1, S. 19-49. DOI:10.1515/jbnst-2018-0047

Abstract

"Motivated by the canonical (random) on-the-job search model, I measure a person's ability to sort into higher ranked jobs by the risk ratio of job-to-job transitions to transitions into unemployment. I show that this measure possesses various desirable features. Making use of the Survey of Income and Program Participation (SIPP), I study the relation between human capital and the risk ratio of job-to-job transitions to transitions into unemployment. Formal education tends to be positively associated with this risk ratio. General experience and occupational tenure have a pronounced negative correlation with both job-to-job transitions and transitions into unemployment, leaving the risk ratio, however, mostly unaffected. In contrast, the estimates suggest that human-capital concepts that take into account the multidimensionality of skills, e.g. versatility, play a prominent role." (Author's abstract, © De Gruyter) ((en))

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Zimmerman, Ryan D., Brian W. Swider & Jeffrey B. Arthur (2020): Does turnover destination matter? Differentiating antecedents of occupational change versus organizational change. In: Journal of vocational behavior, Jg. 121. DOI:10.1016/j.jvb.2020.103470

Abstract

"In this study, we seek to understand why some employees decide to leave organizations to change occupations instead of either changing organizations while staying in the same occupation or staying in the same job at the same organization. Moving beyond the existing focus on antecedents of occupational commitment and occupation withdrawal intentions, we employ an occupational embeddedness framework to examine five occupational factors as potential drivers of occupational change. Using a large dataset of 3201 professionals, our results indicate that several factors underlying the overarching concept of occupational embeddedness (e.g., wage level, non-core job duties, occupational investment, and moonlighting) were related to individuals' likelihood of changing occupations compared to changing organizations within the same occupation or staying at the same organization. Our findings suggest that specific turnover destination may be important to understanding why people leave jobs. We discuss the theoretical implications of our findings, along with practical implications at the occupational, organizational, and individual levels regarding how occupational turnover may be prevented." (Author's abstract, IAB-Doku, © 2020 Elsevier) ((en))

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Aepli, Manuel (2019): Technological change and occupation mobility: A task-based approach to horizontal mismatch. (GLO discussion paper / Global Labor Organization 361), Maastricht, 48 S.

Abstract

"Technological change and its impacts on labour markets are a much-discussed topic in economics. Economists generally assume that new technology penetrating the labour market shifts firms' task demand. Given individuals' acquired and supplied skills, these task demand shifts potentially foster horizontal skill mismatches, e.g. individuals not working in their learned occupations. In this paper, I first analyse the relation between task shifting technological change and individuals' horizontal mismatch incidence. Second, I estimate individuals' mismatch wage penalties triggered by this relation. The present paper proposes an instrumental variable (IV) approach to map this mechanism and to obtain causal estimates on mismatch wage penalties. Applying this empirical strategy yields a wage penalty of roughly 12% for horizontally mismatched individuals." (Author's abstract, IAB-Doku) ((en))

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Amior, Michael (2019): Education and geographical mobility. The role of wage rents. (CEP discussion paper 1616), London, 59 S.

Abstract

"Geographical mobility is known to be crucial to the adjustment of local labor markets. But there is severe inequity in the incidence of mobility: better educated Americans make many more long-distance moves. I argue this is a consequence of larger wage offer dispersion, independent of geography. In a thin labor market, this generates larger wage rents (in excess of workers' reservations) in new job matches, particularly for younger workers who are just beginning their careers. If an offer happens to arrive from a distant location, these larger rents are more likely to justify the cost of moving - even if the offer distribution is invariant geographically. Also, local job creation will elicit a larger migratory response. I motivate my claims with new evidence on mobility patterns and subjective moving costs. And I test my hypothesis by estimating wage returns to local and long-distance job matching over the jobs ladder. Though I focus on education differentials, this paper offers new insights for understanding geographical immobility more generally" (Author's abstract, IAB-Doku) ((en))