Job Switching Wage Premium

Enda Keenan

No 7/RT/24, Research Technical Papers from Central Bank of Ireland

Abstract: This paper explores the wage premium associated with job switching in Ireland by utilising newly available gross pay data from the Labour Force Survey (LFS) linked to administrative data on individual earnings. Job switching, or moving directly from one job to another, is often driven by the potential for wage increases and improved job matches. While job switching behaviour tends to vary with business cycles, this analysis finds that job switchers in Ireland experience a wage premium. By controlling for demographic factors such as age, education and sector, the estimated wage premium for job switchers lies between 2.3 per cent and 2.4 per cent in the quarter immediately following a job change.

Keywords: Job switching; Labour mobility; Job-to-job flows; Wage premium; Employment. (search for similar items in EconPapers)
JEL-codes: C23 J31 J62 (search for similar items in EconPapers)
Date: 2024-12
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