IDEAS home Printed from https://ideas.repec.org/a/boi/isrerv/v16y2018i2p37-62.html
   My bibliography  Save this article

On Job Mobility And Earnings Growth

Author

Listed:
  • Miri Endeweld

    (National Insurance Institute, Israel)

Abstract

This study examines the relationship between job mobility (mobility between employers), and wage growth. This relationship is examined in the short term (year–to-year) as well as in the medium-long term (after five years). Findings are presented for three sub-periods of equal length within the overall period, referring to a decade and a half between 1990 and 2005, with the aim of learning about the persistence and stability of this relationship throughout demographically, economically and socially distinct periods. The data used in this study come from the administrative data of the Tax Authorities, combined with additional demographic and economic data from other sources. According to the data, job stability noticeably diminished between the first and second half of the 1990s, and remained at a similar level afterwards. In the short term, the results show that job mobility—even when voluntary—has a negative effect on wage growth in each of the three studied periods, regardless of market and social conditions in these periods. Nevertheless, from a cumulative perspective over a period of five years, involuntary job mobility appears to have a negative effect on wage levels in the long term as well, while the findings regarding voluntary mobility are inconclusive but may be positive. The long-term moderate increase in wages related to job mobility may be explained by the hypothesis that in the current labor market, employees regard transitions between employers as a form of investment that carries certain risks but may be fruitful in the long term, despite its short-term costs—similar to what the human capital theory suggests regarding the acquisition of education or any other professional training. The findings also show that the effect of job mobility on wage growth in the long term is not resistant to periodical conditions and changes between the different periods. Considering the transition costs of job mobility, which are not taken into account in this study, job stability seems to be related, for the most part, to better wage growth.

Suggested Citation

  • Miri Endeweld, 2018. "On Job Mobility And Earnings Growth," Israel Economic Review, Bank of Israel, vol. 16(2), pages 37-62.
    • Handle: RePEc:boi:isrerv:v:16:y:2018:i:2:p:37-62
    as

    Download full text from publisher

    File URL: https://boiwebrepec.azurefd.net/RePEc/boi/isrerv/IsER_16_2018_2_037-062.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dimitris Pavlopoulos & Didier Fouarge & Ruud Muffels & Jeroen K. Vermunt, 2007. "Job Mobility and Wage Mobility of High- and Low-paid Workers," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 47-58.
    2. Jacob Mincer & Boyan Jovanovic, 1981. "Labor Mobility and Wages," NBER Chapters, in: Studies in Labor Markets, pages 21-64, National Bureau of Economic Research, Inc.
    3. Dimitris Pavlopoulos & Ruud Muffels & Jeroen Vermunt, 2010. "Wage mobility in Europe. A comparative analysis using restricted multinomial logit regression," Quality & Quantity: International Journal of Methodology, Springer, vol. 44(1), pages 115-129, January.
    4. Jacob Mincer & Solomon Polachek, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 76-110, National Bureau of Economic Research, Inc.
    5. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    6. A. Davia, Maria, 2005. "Job mobility and wage mobility at the beginning of the working career: a comparative view across Europe," ISER Working Paper Series 2005-03, Institute for Social and Economic Research.
    7. Jacob Mincer, 1986. "Wage Changes in Job Changes," NBER Working Papers 1907, National Bureau of Economic Research, Inc.
    8. Garcia Perez, Jose Ignacio & Rebollo Sanz, Yolanda, 2005. "Wage changes through job mobility in Europe: A multinomial endogenous switching approach," Labour Economics, Elsevier, vol. 12(4), pages 531-555, August.
    9. Robert H. Topel & Michael P. Ward, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 439-479.
    10. Bernhardt, Annette & Morris, Martina & Handcock, Mark S & Scott, Marc A, 1999. "Trends in Job Instability and Wages for Young Adult Men," Journal of Labor Economics, University of Chicago Press, vol. 17(4), pages 65-90, October.
    11. Wojciech Kopczuk & Emmanuel Saez & Jae Song, 2010. "Earnings Inequality and Mobility in the United States: Evidence from Social Security Data Since 1937," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(1), pages 91-128.
    12. Kristen Keith & Abagail McWilliams, 1995. "The Wage Effects of Cumulative Job Mobility," ILR Review, Cornell University, ILR School, vol. 49(1), pages 121-137, October.
    13. Randy Hodson, 1978. "Labor in the Monopoly, Competitive, and State Sectors- of Production," Politics & Society, , vol. 8(3-4), pages 429-480, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Miri Endeweld & Anat Herbst-Debby & Amit Kaplan, 2022. "Do the Privileged Always Win? Economic Consequences of Divorce by Income and Gender Groups," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 159(1), pages 77-100, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:boi:isrerv:v:16:y:2019:i:2:p:37-62 is not listed on IDEAS
    2. FOUARGE Didier & MUFFELS Ruud & PAVLOPOULOS Dimitris & VERMUNT Jeroen K., 2007. "Who benefits from a job change: The dwarfs or the giants?," IRISS Working Paper Series 2007-16, IRISS at CEPS/INSTEAD.
    3. Avner Ahituv & Robert Lerman, 2011. "Job turnover, wage rates, and marital stability: How are they related?," Review of Economics of the Household, Springer, vol. 9(2), pages 221-249, June.
    4. Maite Blázquez, 2009. "Earnings mobility in Spain: the role of job mobility and contractual arrangements," Spanish Economic Review, Springer;Spanish Economic Association, vol. 11(3), pages 179-205, September.
    5. Adele Bergin, 2013. "Job Changes and Wage Changes: Estimation with Measurement Error in a Binary Variable," Economics Department Working Paper Series n240-13.pdf, Department of Economics, National University of Ireland - Maynooth.
    6. Mertens, Antje, 1997. "Industrielle und berufliche Mobilität: Eine Untersuchung auf Basis der IAB-Beschäftigtenstichprobe," SFB 373 Discussion Papers 1997,62, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    7. Garcia-Serrano, Carlos & A. Davia, Maria & M. Arranz, Jose, 2005. "Labour market transitions and wage dynamics in Europe," ISER Working Paper Series 2005-17, Institute for Social and Economic Research.
    8. Sami Napari, 2008. "The Early‐career Gender Wage Gap among University Graduates in the Finnish Private Sector," LABOUR, CEIS, vol. 22(4), pages 697-733, December.
    9. Alan Manning & Joanna Swaffield, 2008. "The gender gap in early-career wage growth," Economic Journal, Royal Economic Society, vol. 118(530), pages 983-1024, July.
    10. Solomon Polachek, 2003. "Mincer's Overtaking Point and the Life Cycle Earnings Distribution," Review of Economics of the Household, Springer, vol. 1(4), pages 273-304, December.
    11. Lanfang Deng & Hongyi Li & Wei Shi, 2022. "Willingness for different job mobility types and wage expectations: An empirical analysis based on the online resumes," Papers in Regional Science, Wiley Blackwell, vol. 101(1), pages 135-161, February.
    12. repec:eee:labchp:v:3:y:1999:i:pb:p:2373-2437 is not listed on IDEAS
    13. Robert A. Hart, 2006. "Worker–Job Matches, Job Mobility and Real Wage Cyclicality," Economica, London School of Economics and Political Science, vol. 73(290), pages 287-298, May.
    14. Woodcock Simon D, 2010. "Heterogeneity and Learning in Labor Markets," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-69, September.
    15. Topel, Robert H, 1991. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 145-176, February.
    16. Borghans, Lex & Golsteyn, Bart H.H., 2010. "Job Mobility in Europe, Japan and the U.S," IZA Discussion Papers 5386, Institute of Labor Economics (IZA).
    17. Maite Blázquez Cuesta, 2006. "Earnings Mobility and Low-Wage Employment in Spain: The Role of Job Mobility and Contractual Arrangements," LoWER Working Papers wp11, AIAS, Amsterdam Institute for Advanced Labour Studies.
    18. repec:eee:labchp:v:1:y:1986:i:c:p:525-602 is not listed on IDEAS
    19. Del Bono, Emilia & Vuri, Daniela, 2011. "Job mobility and the gender wage gap in Italy," Labour Economics, Elsevier, vol. 18(1), pages 130-142, January.
    20. Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2004. "Wage gains among job changers across the business cycle: insight from state administrative data," FRB Atlanta Working Paper 2004-19, Federal Reserve Bank of Atlanta.
    21. Polachek, Solomon W., 2008. "Earnings Over the Life Cycle: The Mincer Earnings Function and Its Applications," Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(3), pages 165-272, April.
    22. Abrar Reshid, Abdulaziz, 2017. "The gender gap in early career wage growth: the role of Children, job mobility and occupational mobility," Working Paper Series 2017:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    23. Jeffrey J. Yankow, 2003. "Migration, Job Change, and Wage Growth: A New Perspective on the Pecuniary Return to Geographic Mobility," Journal of Regional Science, Wiley Blackwell, vol. 43(3), pages 483-516, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:boi:isrerv:v:16:y:2018:i:2:p:37-62. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yossi Yakhin (email available below). General contact details of provider: https://edirc.repec.org/data/boigvil.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.