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

David Jinkins, Annaïg Morin

Publikation: Bidrag til konference › Paper › Forskning › peer review

Resumé

In this paper, we measure the contribution of match quality to the wage growth experienced by job movers. Using the Danish matched employer-employee data, we reject the exogenous mobility assumption needed to estimate a standard fixedeffects wage regression. To estimate firm fixed effects, we exploit the sub-sample of workers hired from unemployment, for whom the exogenous mobility assumption is not rejected. Then we decompose the mean and the variance of wage growth of jobto-job movers. We find that most of the wage growth experienced by job movers is attributable to an improvement in the quality of the worker-firm match rather than transitions to better firms. Also, 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 and high-educated workers.
In this paper, we measure the contribution of match quality to the wage growth experienced by job movers. Using the Danish matched employer-employee data, we reject the exogenous mobility assumption needed to estimate a standard fixedeffects wage regression. To estimate firm fixed effects, we exploit the sub-sample of workers hired from unemployment, for whom the exogenous mobility assumption is not rejected. Then we decompose the mean and the variance of wage growth of jobto-job movers. We find that most of the wage growth experienced by job movers is attributable to an improvement in the quality of the worker-firm match rather than transitions to better firms. Also, 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 and high-educated workers.
SprogEngelsk
Dato2017
Antal sider33
StatusUdgivet - 2017
BegivenhedConference on Markets with Search Frictions - The Aarhus Institute of Advanced Studies, Aarhus University, Aarhus, Danmark
Varighed: 26 okt. 2017 → 28 okt. 2017

Konference

KonferenceConference on Markets with Search Frictions
LokationThe Aarhus Institute of Advanced Studies, Aarhus University
LandDanmark
ByAarhus
Periode26/10/2017 → 28/10/2017

Bibliografisk note

CBS Bibliotek har ikke adgang til materialet

Citer dette

Jinkins, D., & Morin, A. (2017). Job-to-Job Transitions, Sorting, and Wage Growth. Afhandling præsenteret på Conference on Markets with Search Frictions, Aarhus, Danmark.
Jinkins, David ; Morin, Annaïg . / Job-to-Job Transitions, Sorting, and Wage Growth. Afhandling præsenteret på Conference on Markets with Search Frictions, Aarhus, Danmark.33 s.
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Jinkins, D & Morin, A 2017, 'Job-to-Job Transitions, Sorting, and Wage Growth' Paper fremlagt ved Conference on Markets with Search Frictions, Aarhus, Danmark, 26/10/2017 - 28/10/2017, .

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

2017. Afhandling præsenteret på Conference on Markets with Search Frictions, Aarhus, Danmark.

Publikation: Bidrag til konference › Paper › Forskning › peer review

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Jinkins D, Morin A. Job-to-Job Transitions, Sorting, and Wage Growth. 2017. Afhandling præsenteret på Conference on Markets with Search Frictions, Aarhus, Danmark.