An Estimate of a Sectoral Model of Labor Mobility
Boyan Jovanovic () and
Robert Moffitt ()
No 3227, NBER Working Papers from National Bureau of Economic Research, Inc
This paper develops a model of sectoral labor mobility and tests its main implications. The model nests two distinct hypotheses on the origin of mobility: (a) sectoral shocks (Lucas and Prescott, 1974) and (b) worker-employer mismatch (Jovanovic, 1979, Miller, 1984, Flinn, 1986). We estimate the relative importance of each hypothesis, and find that the bulk of labor mobility is caused by mismatch rather than by sectoral shift. We then try to put a value on society's match-specific information. That is, we ask to what extent the availability of the option to change jobs raises GNP. We find that the mobility option raises expected earnings by roughly between 8.5 percent and 13 percent of labor earnings, which translates to an increase in GNP of between 6 percent and 9 percent.
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (62) Track citations by RSS feed
Published as Journal of Political Economy, Vol.98, No.4, pp. 827-852, (August 1990).
Downloads: (external link)
Journal Article: An Estimate of a Sectoral Model of Labor Mobility (1990)
Working Paper: AN ESTIMATE OF A SECTORAL MODEL OF LABOR MOBILITY (1988)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:3227
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Series data maintained by ().