Job-to-job Transitions, Sorting, and Wage Growth

David Jinkins, Annaïg Morin

Publikation: Working paper › Forskning

Resumé

We measure the contribution of match quality to the wage growth experienced by job movers. We reject the exogenous mobility assumption needed to estimate a standard fixed-effects wage regression in the Danish matched employer-employee data. We exploit the sub-sample of workers hired from unemployment, for whom the exogenous mobility assumption is not rejected, to estimate firm fixed effects. We then decompose the variance of wage growth of all job movers. We find that 66% of the variance of wage growth experienced by job movers can be attributed to variance in match quality. Expected match quality growth is higher for higher-skilled occupations.
OriginalsprogEngelsk
Udgivelses stedBonn
UdgiverIZA
Antal sider34
StatusUdgivet - 2017
NavnIZA Discussion Paper
Nummer10601

Emneord

  • Job mobility
  • Fixed-effect models
  • Panel data models
  • Assortive matching

Citer dette

Jinkins, D., & Morin, A. (2017). Job-to-job Transitions, Sorting, and Wage Growth. Bonn: IZA. IZA Discussion Paper, Nr. 10601
Jinkins, David ; Morin, Annaïg . / Job-to-job Transitions, Sorting, and Wage Growth. Bonn : IZA, 2017. (IZA Discussion Paper; Nr. 10601).
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Jinkins, D & Morin, A 2017 'Job-to-job Transitions, Sorting, and Wage Growth' IZA, Bonn.

Job-to-job Transitions, Sorting, and Wage Growth. / Jinkins, David; Morin, Annaïg .

Bonn : IZA, 2017.

Publikation: Working paper › Forskning

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AB - We measure the contribution of match quality to the wage growth experienced by job movers. We reject the exogenous mobility assumption needed to estimate a standard fixed-effects wage regression in the Danish matched employer-employee data. We exploit the sub-sample of workers hired from unemployment, for whom the exogenous mobility assumption is not rejected, to estimate firm fixed effects. We then decompose the variance of wage growth of all job movers. We find that 66% of the variance of wage growth experienced by job movers can be attributed to variance in match quality. Expected match quality growth is higher for higher-skilled occupations.

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KW - Fixed-effect models

KW - Panel data models

KW - Assortive matching

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KW - Panel data models

KW - Assortive matching

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Jinkins D, Morin A. Job-to-job Transitions, Sorting, and Wage Growth. Bonn: IZA. 2017.

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