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Occupational Downgrading and Upgrading in Britain

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  • Phil Evans

Abstract

The willingness of workers to move down an occupational hierarchy is a potentially important source of flexibility in the labour market. But, relatively little is known about the scale or pattern of occupational up‐ and downgrading. This paper examines who downgrades and the cyclical structure of up‐ and downgrading. We find that occupational downgrading is surprisingly large relative to flows into unemployment. Individuals who have a high payoff to skilled work, such as educated workers, are less likely to downgrade. Contrary to expectations, the rate of downgrading is found to be greater in the boom, while upgrading follows the more conventional expectation of also being procyclical. This finding is interpreted as evidence consistent with the rationing of jobs in the downgrading process, contrary to the assumptions of simple dual labour market models.

Suggested Citation

  • Phil Evans, 1999. "Occupational Downgrading and Upgrading in Britain," Economica, London School of Economics and Political Science, vol. 66(261), pages 79-96, February.
    • Handle: RePEc:bla:econom:v:66:y:1999:i:261:p:79-96
    DOI: 10.1111/1468-0335.00157
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    Cited by:

    1. Ronald Bachmann & Peggy Bechara & Christina Vonnahme, 2020. "Occupational Mobility in Europe: Extent, Determinants and Consequences," De Economist, Springer, vol. 168(1), pages 79-108, March.
    2. Kiersztyn, Anna, 2013. "Stuck in a mismatch? The persistence of overeducation during twenty years of the post-communist transition in Poland," Economics of Education Review, Elsevier, vol. 32(C), pages 78-91.
    3. Martin HUMBURG & Andries de GRIP & Rolf van der VELDEN, 2017. "Which skills protect graduates against a slack labour market?," International Labour Review, International Labour Organization, vol. 156(1), pages 25-43, March.
    4. Meng, Xin & Junankar, Pramod N. (Raja) & Kapuscinski, Cezary A., 2004. "Job Mobility along the Technological Ladder: A Case Study of Australia," IZA Discussion Papers 1169, Institute of Labor Economics (IZA).
    5. Markus Gangl, 2000. "Education and Labour Market Entry across Europe : The Impact of Institutional Arrangements in Training Systems and Labour Markets," MZES Working Papers 25, MZES.
    6. Jun Han & Wing Suen, 2011. "Age structure of the workforce in growing and declining industries: evidence from Hong Kong," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 167-189, January.
    7. Nuno Crespo & Nadia Simoes & Sandrina B. Moreira, 2014. "Gender differences in occupational mobility - evidence from Portugal," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(4), pages 460-481, July.

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