Does a change of occupation lead to higher earnings?

Barbara Liberda () and Marek Pęczkowski

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of this paper is to identify how the mobility between different types of broadly defined occupation (hired work, self-employment in industry, services and agriculture or social security beneficiaries) changes personal income of individuals. We apply the Markov matrices to the panel data on 30540 individuals for 2007-2008 from the Polish Household Budget Surveys. Our hypothesis is that a change of occupation affects individual capability to earn income, controlling for the occupation a person quits and the occupation a person starts, as well as age, education level and a permanent or temporary character of work. We test our hypothesis using the regression analysis. Our results show that the inter-occupational mobility matters mostly for those quitting hired work for self-employment, for the better educated, as well as for respondents above 60 years of age.

Keywords: income; earning; mobility; occupation; hired work; self-employment (search for similar items in EconPapers)
JEL-codes: D11 D12 D14 (search for similar items in EconPapers)
Date: 2011, Revised 2011
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Published in Statistics in Transition-new series 1 August 2011.12(2011): pp. 193-206

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Related works:
Journal Article: Does a change of occupation lead to higher earnings? (2011)
Working Paper: Does a change of occupation lead to higher earnings? (2011)
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