Estimating the Employer Switching Costs and Wage Responses of Forward-Looking Engineers

Jeremy Fox

Journal of Labor Economics, 2010, vol. 28, issue 2, 357-412

Abstract: This article estimates worker switching costs and how much the employer switching of experienced engineers responds to outside wage offers. I use data on engineers across Swedish private sector firms to estimate the relative importance of employer wage policies and switching costs in a dynamic programming, discrete choice model of employer choice. The differentiated firms are modeled in employer characteristic space, and each firm has its own age-wage profile. A majority of engineers have moderately high switching costs and a minority of experienced workers are responsive to outside wage offers. Younger workers are more sensitive to outside wage offers. (c) 2010 by The University of Chicago. All rights reserved.

Date: 2010
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Working Paper: Estimating the Employer Switching Costs and Wage Responses of Forward-Looking Engineers (2009)
Working Paper: Estimating the Employer Switching Costs and Wage Responses of Forward-Looking Engineers (2009)
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