EconPapers    
Economics at your fingertips  
 

Worker reallocation across occupations: Confronting data with theory

Etienne Lalé ()

Labour Economics, 2017, vol. 44, issue C, 51-68

Abstract: This paper studies the secular behavior of worker reallocation across occupations in the U.S. labor market. In the empirical analysis, we use microdata to construct consistent time series over a forty-five year period, and document that the fraction of employment reallocated annually across occupations is highly stable in the long run. We go beyond description and use an equilibrium model to identify potential changes in the productivity shocks and mobility costs that govern worker reallocation across occupations. We uncover the joint evolution of these factors by deriving a simple mapping between data and the model. Our analysis shows that constant reallocation rates across occupations mask slow-moving increases in the volatility of productivity shocks since the mid-1980s, and a pronounced upward shift in the cost of switching occupations in the period surrounding the Great Recession.

Keywords: Occupations; Reallocation; Wages; Equilibrium search (search for similar items in EconPapers)
JEL-codes: E24 J21 J31 J62 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927537116303943
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Worker Reallocation Across Occupations: Confronting Data with Theory (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:44:y:2017:i:c:p:51-68

Access Statistics for this article

Labour Economics is currently edited by A. Ichino

More articles in Labour Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-10-17
Handle: RePEc:eee:labeco:v:44:y:2017:i:c:p:51-68