Inter-industry labor reallocation and task distance

Ayako Kondo and Saori Naganuma
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Saori Naganuma: Bank of Japan

No 14-E-8, Bank of Japan Working Paper Series from Bank of Japan

Abstract: This paper investigates the factors preventing inter-industry labor reallocation by estimating the determinants of inter-industry worker flow and earnings change after a job change. We find that the difference in required tasks is an important reason for reduction in earnings after an inter-industry job change, and the fear of earnings losses may prevent workers from moving to industries requiring a different set of tasks. Also, more workers switch to industries with which their previous industry had larger transactions, although it affects earnings changes only marginally. On the other hand, industry performance does not affect labor inflow or wage changes significantly for inter-industry job changes. Furthermore, earnings loss associated with a move to a distant industry is not necessarily smaller for workers who are relatively more likely to move to a distant industry.

Keywords: inter-industry labor mobility; task specific human capital (search for similar items in EconPapers)
JEL-codes: J21 J62 (search for similar items in EconPapers)
Date: 2014-09-30
New Economics Papers: this item is included in nep-cse, nep-hrm, nep-lab, nep-lma and nep-tid
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Inter-industry labor reallocation and task distance (2015)
Working Paper: Inter-industry labor reallocation and task distance (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:boj:bojwps:wp14e08

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