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Career-Hopping: Learning and Turnover in an Imperfect Labor Market

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  • Tervio, Marko

Abstract

This paper studies a two-sector model of learning-by-doing that is partially transferable between sectors. There is a potential efficiency gain from intersectoral turnover when the sectors have different complementary production costs or learning curves of different steepness. If workers are liquidity restrained then there is a bias toward increased intersectroal turnover, resulting in socially inefficient career patterns. Excess turnover can even result in lower average productivity of workers in both sectors. If individual productivity is decreasing toward the end of the career, then a liquidity restraint on the young workers will also cause retirement to be delayed beyond the socially efficient retirement age.

Suggested Citation

  • Tervio, Marko, 2006. "Career-Hopping: Learning and Turnover in an Imperfect Labor Market," Institute for Research on Labor and Employment, Working Paper Series qt7jq2v066, Institute of Industrial Relations, UC Berkeley.
    • Handle: RePEc:cdl:indrel:qt7jq2v066
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    References listed on IDEAS

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    More about this item

    Keywords

    JEL D31; J62;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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