Abstract
| Language | English |
|---|---|
| Journal | Labour Economics |
| Volume | 55 |
| Pages | 300-327 |
| Number of pages | 28 |
| ISSN | 0927-5371 |
| DOIs | |
| State | Published - Dec 2018 |
Keywords
- Job mobility
- Fixed-effect wage models
- Panel data models
- Assortative matching
Cite this
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Job-to-Job Transitions, Sorting, and Wage Growth. / Jinkins, David; Morin, Annaïg .
In: Labour Economics, Vol. 55, 12.2018, p. 300-327.Research output: Contribution to journal › Journal article › Research › peer-review
TY - JOUR
T1 - Job-to-Job Transitions, Sorting, and Wage Growth
AU - Jinkins,David
AU - Morin,Annaïg
PY - 2018/12
Y1 - 2018/12
N2 - In this paper we measure the relative contribution of firm effects and match quality to wage growth experienced by workers moving between jobs. We provide evidence that firm effects only explain a small share of the observed wage dynamics. We also show that standard assumptions on match quality used to estimate fixed-effect wage models are not well supported in Danish data. We propose an alternative strategy to estimate an additive model of wage changes that includes a freely-varying match effect for all but a subset of job changers. Using estimates from Danish linked worker-firm data, we find that 44% of the wage growth experienced by job-to-job movers is attributable to an improvement in the quality of the worker-firm match, and 66% of the variance of wage growth is explained by the variance of the change in match effects.
AB - In this paper we measure the relative contribution of firm effects and match quality to wage growth experienced by workers moving between jobs. We provide evidence that firm effects only explain a small share of the observed wage dynamics. We also show that standard assumptions on match quality used to estimate fixed-effect wage models are not well supported in Danish data. We propose an alternative strategy to estimate an additive model of wage changes that includes a freely-varying match effect for all but a subset of job changers. Using estimates from Danish linked worker-firm data, we find that 44% of the wage growth experienced by job-to-job movers is attributable to an improvement in the quality of the worker-firm match, and 66% of the variance of wage growth is explained by the variance of the change in match effects.
KW - Job mobility
KW - Fixed-effect wage models
KW - Panel data models
KW - Assortative matching
KW - Job mobility
KW - Fixed-effect wage models
KW - Panel data models
KW - Assortative matching
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U2 - 10.1016/j.labeco.2018.10.008
DO - 10.1016/j.labeco.2018.10.008
M3 - Journal article
VL - 55
SP - 300
EP - 327
JO - Labour Economics
T2 - Labour Economics
JF - Labour Economics
SN - 0927-5371
ER -