The Role of Firms in Occupational Transitions

Jeremias Klaeui, Daniel Kopp, Rafael Lalive and Michael Siegenthaler

No 21027, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Using recruiter clickstream data and application diaries, we analyze when and why firms hire occupational movers. Movers are contacted 21% and hired 26% less often than incumbents. Holding job-seeker quality fixed, movers’ contact gap falls to 10.4%, implying movers are negatively selected. Four-fifths of this gap reflects movers’ lower expected overlap with the job’s requirements. The gap is 3.3 times larger where an occupation’s jobs share most requirements than where they differ widely, and it narrows when incumbents are scarce. Firms’ greater openness accounts for 30% of the shift in contacts and hires from incumbents to movers as occupations tighten.

JEL-codes: J24 J62 J64 (search for similar items in EconPapers)
Date: 2026-01
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