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

Research output: Working paperResearch


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.
Original languageEnglish
Place of PublicationBonn
Number of pages34
Publication statusPublished - 2017
SeriesIZA Discussion Paper


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

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