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.
| Originalsprog | Engelsk |
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| Publikationsdato | 2017 |
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| Antal sider | 33 |
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| Status | Udgivet - 2017 |
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| Begivenhed | Conference on Markets with Search Frictions - The Aarhus Institute of Advanced Studies, Aarhus University, Aarhus, Danmark
Varighed: 26 okt. 2017 → 28 okt. 2017 |
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| Konference | Conference on Markets with Search Frictions |
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| Lokation | The Aarhus Institute of Advanced Studies, Aarhus University |
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| Land | Danmark |
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| By | Aarhus |
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| Periode | 26/10/2017 → 28/10/2017 |
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@conference{b09891e4862e48318585044f271030c9,
title = "Job-to-Job Transitions, Sorting, and Wage Growth",
abstract = "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.",
author = "David Jinkins and Anna{\"i}g Morin",
note = "CBS Library does not have access to the material; null ; Conference date: 26-10-2017 Through 28-10-2017",
year = "2017",
language = "English",
}
TY - CONF
T1 - Job-to-Job Transitions, Sorting, and Wage Growth
AU - Jinkins, David
AU - Morin, Annaïg
N1 - CBS Library does not have access to the material
PY - 2017
Y1 - 2017
N2 - 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.
AB - 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.
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