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Job Ladders and Growth in Earnings, Hours, and Wages

Joyce Hahn, Henry Hyatt () and Hubert Janicki ()
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Joyce Hahn: U.S. Census Bureau

No 908, 2018 Meeting Papers from Society for Economic Dynamics

Abstract: We use matched employer-employee data to consider the impact of the recent slowdown in the job ladder on wage and earnings growth in the U.S. from 1996 to 2015. We develop an accounting method that measures how earnings changes experienced by workers moving onto and up the job ladder contribute to aggregate growth in earnings. While the higher rate of workers changing employers during expansions tends to increase overall earnings growth, nonemployment transitions offset most of the gains. As a result, the relatively high growth seen in the late 1990s and 2015 is largely driven by the earnings pattern of job stayers. We further investigate the contribution of employer-to-employer transitions and find large “match effects” lead to greater gains in hours than wages.

New Economics Papers: this item is included in nep-ure
Date: 2018
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More papers in 2018 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
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