Job Mobility and Sorting: Theory and Evidence

Damir Stijepic

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2020, vol. 240, issue 1, 19-49

Abstract: Motivated by the canonical (random) on-the-job search model, I measure a person’s ability to sort into higher ranked jobs by the risk ratio of job-to-job transitions to transitions into unemployment. I show that this measure possesses various desirable features. Making use of the Survey of Income and Program Participation (SIPP), I study the relation between human capital and the risk ratio of job-to-job transitions to transitions into unemployment. Formal education tends to be positively associated with this risk ratio. General experience and occupational tenure have a pronounced negative correlation with both job-to-job transitions and transitions into unemployment, leaving the risk ratio, however, mostly unaffected. In contrast, the estimates suggest that human-capital concepts that take into account the multidimensionality of skills, e.g. versatility, play a prominent role.

Keywords: gross worker flows; job mobility; employer–employer transitions; unemployment; human capital; education; versatility; search and matching; SIPP (search for similar items in EconPapers)
JEL-codes: I24 I26 J24 J60 J63 (search for similar items in EconPapers)
Date: 2020
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Working Paper: Job Mobility and Sorting: Theory and Evidence (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:jns:jbstat:v:240:y:2020:i:1:p:19-49:n:1

DOI: 10.1515/jbnst-2018-0047

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