Who benefits from a job change: The dwarfs or the giants?

Δημήτρης Παυλόπουλος (), Didier Fouarge (), Ruud Muffels () and Jeroen K. Vermunt
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Jeroen K. Vermunt: Tilburg University, Department of Methodology and Statistics

No 2007-16, IRISS Working Paper Series from IRISS at CEPS/INSTEAD

Abstract: Empirical studies have shown that voluntary job-to-job changes have a positive effect on wage mobility. In this paper, we suggest that the impact of a job change on wage growth depends on the position in the wage distribution. Using panel data from the UK and Germany, we investigate the effect of employer changes and within-firm job changes on year-to-year wage mobility. We show that a change of employer results into a wage increase for the low-paid workers but not for the high-paid workers. Within-firm job changes produce, on average, moderate wage gains for the low-paid workers in the UK, but have no effect in Germany. Results on 3-year wage mobility are shown to be very similar to the results on year-to-year wage growth.

Keywords: low pay; high pay; job mobility; wage mobility (search for similar items in EconPapers)
JEL-codes: J31 J62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hap and nep-lab
Date: 2007-12
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Persistent link: http://EconPapers.repec.org/RePEc:irs:iriswp:2007-16

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