Job-to-Job Transitions, Sorting, and Wage Growth

David Carson Jinkins () and Annaïg Morin ()
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David Carson Jinkins: Copenhagen Business School

No 10601, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We measure the contribution of match quality to the wage growth experienced by job movers. We reject the exogenous mobility assumption needed to estimate a standard fixed-effects wage regression in the Danish matched employer-employee data. We exploit the sub-sample of workers hired from unemployment, for whom the exogenous mobility assumption is not rejected, to estimate firm fixed effects. We then decompose the variance of wage growth of all job movers. We find that 66% of the variance of wage growth experienced by job movers can be attributed to variance in match quality. Expected match quality growth is higher for higher-skilled occupations.

Keywords: job mobility; fixed-effect wage models; assortative matching; panel data models (search for similar items in EconPapers)
JEL-codes: C23 J62 J63 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2017-03
New Economics Papers: this item is included in nep-eur and nep-lab
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Citations: View citations in EconPapers (1)

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Journal Article: Job-to-job transitions, sorting, and wage growth (2018)
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