A Dynamic Analysis of Sectoral Mobility, Worker Mismatc and the Wage-Tenure Profiles

Stéphane Auray (), Damba Lkhagvasuren and Antoine Terracol
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Stéphane Auray: CREST-ENSAI, ULCO and CIRPEE
Authors registered in the RePEc Author Service: David L. Fuller and Stéphane Auray

No 2014-12, Working Papers from Center for Research in Economics and Statistics

Abstract: A dynamic multi-sector model with net and excess mobility is developed to quantify the determinants of the canonical increasing wage-tenure profile. The model distinguishes between three factors: sector specific skill accumulation, sectoral-level shocks, and dynamic worker sector mismatch shocks. The sector-specific skill premium drives the observed negative correlation between lifetime earnings and mobility. Excess mobility driven by worker-sector mismatch shocks explains nearly 20 percent of the observed wage growth for recent movers. A model featuring only dynamic worker-sector mismatch shocks still captures the salient features of the wage-tenure profile. Sectoral-level shocks have a negligible impact on the wage-tenure profile and excess mobility

Keywords: Labor Mobility; Wage Structure; Excess and Net Mobility; Industry-Specific Experience; Dynamic Sectoral Mismatch; Labor Income Shocks; Returns to Tenure (search for similar items in EconPapers)
JEL-codes: E24 J24 J31 J62 (search for similar items in EconPapers)
Pages: 44
Date: 2014-03
New Economics Papers: this item is included in nep-dge, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Working Paper: A Dynamic Analysis of Sectoral Mobility, Worker Mismatch, and the Wage-Tenure Profile (2014)
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