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

David Jinkins, Annaïg Morin

Research output: Working paperResearch

Abstract

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
PublisherIZA
Number of pages34
Publication statusPublished - 2017
SeriesIZA Discussion Paper
Number10601

Keywords

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

Cite this

Jinkins, D., & Morin, A. (2017). Job-to-job Transitions, Sorting, and Wage Growth. Bonn: IZA. IZA Discussion Paper, No. 10601
Jinkins, David ; Morin, Annaïg . / Job-to-job Transitions, Sorting, and Wage Growth. Bonn : IZA, 2017. (IZA Discussion Paper; No. 10601).
@techreport{533a486df42f4c79a5f615ea486263d4,
title = "Job-to-job Transitions, Sorting, and Wage Growth",
abstract = "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.",
keywords = "Job mobility, Fixed-effect models, Panel data models, Assortive matching, Job mobility, Fixed-effect models, Panel data models, Assortive matching",
author = "David Jinkins and Anna{\"i}g Morin",
year = "2017",
language = "English",
publisher = "IZA",
type = "WorkingPaper",
institution = "IZA",

}

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

Bonn : IZA, 2017.

Research output: Working paperResearch

TY - UNPB

T1 - Job-to-job Transitions, Sorting, and Wage Growth

AU - Jinkins, David

AU - Morin, Annaïg

PY - 2017

Y1 - 2017

N2 - 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.

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.

KW - Job mobility

KW - Fixed-effect models

KW - Panel data models

KW - Assortive matching

KW - Job mobility

KW - Fixed-effect models

KW - Panel data models

KW - Assortive matching

M3 - Working paper

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

PB - IZA

CY - Bonn

ER -