A Dynamic Analysis of Sectoral Mobility, Worker Mismatch, and the Wage-Tenure Profile

David Fuller, Damba Lkhagvasuren, Antoine Terracol and Stéphane Auray

No 876, 2014 Meeting Papers from Society for Economic Dynamics

Abstract: A dynamic multi-sector model with both net and excess mobility is developed to quantify the determinants of the canonical increasing wage-tenure profile. The model distinguishes between three potential factors: sector-specific skill accumulation, sector-specific shocks, and dynamic worker-sector mismatch shocks. The sector-specific skill premium drives the observed negative correlation between life-time earnings and mobility. Excess mobility driven by worker-sector mismatch shocks explains nearly 20 percent of the observed wage growth for recent movers. Ignoring dynamic worker-sector mismatch leads to biased estimates of the sector-specific skill premium. Sectoral shocks have a negligible impact on wages and mobility.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (15)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: A Dynamic Analysis of Sectoral Mobility, Worker Mismatc and the Wage-Tenure Profiles (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed014:876

Access Statistics for this paper

More papers in 2014 Meeting Papers from Society for Economic Dynamics Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().