The consequences of job mobility for future earnings in early working life in Germany

Abstract

"This article investigates direct job mobility and job mobility via unemployment at the beginning of the employment career in Germany. While the rationale of predicting outcomes of direct job mobility are similar in liberal countries, Germany's rigid labour market might have different implications for job mobility via unemployment. Using the German Socio-Economic Panel 1984-2006, we will address the following two questions. First, we will investigate the gains/losses for direct job mobility and mobility through unemployment. Here we are especially interested in whether job mobility via unemployment has long-lasting consequences on future earnings. Second, we will address the question of whether income development for direct and indirect job mobility is dependent on the reasons behind the job termination. The analyses show that, in a rigid labour market, only direct voluntary job mobility brings permanent income rewards. Indirect job mobility, on the other hand, has a long-lasting scar effect not only for involuntary but also for voluntary job movers." (Author's abstract, IAB-Doku) ((en))

Cite article

Schmelzer, P. (2012): The consequences of job mobility for future earnings in early working life in Germany. Placing indirect and direct job mobility into institutional context. In: European Sociological Review, Vol. 28, No. 1, p. 82-95. DOI:10.1093/esr/jcq049