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German Job Mobility and Wages

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  • Zimmermann, Klaus F.

    (University of Bonn)

Abstract

The paper investigates the relative importance of job mobility for wages in comparison with human capital framework and the industry approach. Using German panel data, changes of workplaces within the firm as well as between the firms are carefully separated from occupational changes. Results suggest: Germans are much more flexible than is generally conjectured. The internal labor market is more important than the external labor market. The job approach is the most relevant determinant of earnings. Past mobility and sectoral and regional factors determine individual mobility.

Suggested Citation

  • Zimmermann, Klaus F., 1998. "German Job Mobility and Wages," IZA Discussion Papers 4, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4
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    References listed on IDEAS

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    1. De New, John P & Zimmermann, Klaus F, 1994. "Native Wage Impacts of Foreign Labor: A Random Effects Panel Analysis," Journal of Population Economics, Springer;European Society for Population Economics, vol. 7(2), pages 177-192.
    2. Brown, James N, 1989. "Why Do Wages Increase with Tenure? On-the-Job Training and Life-Cycle Wage Growth Observed within Firms," American Economic Review, American Economic Association, vol. 79(5), pages 971-991, December.
    3. Schmidt, Christoph M & Zimmermann, Klaus F, 1991. "Work Characteristics, Firm Size and Wages," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 705-710, November.
    4. Ruhm, Christopher J, 1990. "Do Earnings Increase with Job Seniority?," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 143-147, February.
    5. Brown, James N & Light, Audrey, 1992. "Interpreting Panel Data on Job Tenure," Journal of Labor Economics, University of Chicago Press, vol. 10(3), pages 219-257, July.
    6. Creedy, John & Whitfield, Keith, 1988. "The Economic Analysis of Internal Labour Markets," Bulletin of Economic Research, Wiley Blackwell, vol. 40(4), pages 247-269, October.
    7. Demougin, Dominique & Siow, Aloysius, 1994. "Careers in Ongoing Hierarchies," American Economic Review, American Economic Association, vol. 84(5), pages 1261-1277, December.
    8. Winkelmann, Rainer & Zimmermann, Klaus F, 1992. "Ageing, Migration and Labour Mobility," CEPR Discussion Papers 706, C.E.P.R. Discussion Papers.
    9. Johnson,Paul & Zimmermann,Klaus F. (ed.), 1993. "Labour Markets in an Ageing Europe," Cambridge Books, Cambridge University Press, number 9780521443982, October.
    10. Canice Prendergast, 1993. "The Role of Promotion in Inducing Specific Human Capital Acquisition," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(2), pages 523-534.
    11. Muhleisen, Martin & Zimmermann, Klaus F., 1994. "A panel analysis of job changes and unemployment," European Economic Review, Elsevier, vol. 38(3-4), pages 793-801, April.
    12. Hutchens, Robert M, 1989. "Seniority, Wages and Productivity: A Turbulent Decade," Journal of Economic Perspectives, American Economic Association, vol. 3(4), pages 49-64, Fall.
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    Cited by:

    1. Jeworrek, Sabrina & Brachert, Matthias, 2022. "Where to go? High-skilled individuals' regional preferences," IWH Discussion Papers 27/2022, Halle Institute for Economic Research (IWH).
    2. Constant, Amelie F. & Zimmermann, Klaus F., 2003. "Occupational Choice Across Generations," IZA Discussion Papers 975, Institute of Labor Economics (IZA).
    3. Rainer Winkelmann & Klaus Zimmermann, 1998. "Is job stability declining in Germany? Evidence from count data models," Applied Economics, Taylor & Francis Journals, vol. 30(11), pages 1413-1420.
    4. Klaus Zimmermann, 2005. "European Labour Mobility: Challenges and Potentials," De Economist, Springer, vol. 153(4), pages 425-450, December.
    5. Michela Ponzo, 2012. "On-the-job Search in Italian Labor Markets: An Empirical Analysis," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 19(2), pages 213-232, July.
    6. Sousa-Poza, Alfonso & Sousa-Poza, Andres A., 2007. "The effect of job satisfaction on labor turnover by gender: An analysis for Switzerland," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(6), pages 895-913, December.
    7. Felix Reichling, 2005. "Retraining the Unemployed in a Matching Model with Turbulence," Discussion Papers 04-016, Stanford Institute for Economic Policy Research.
    8. Constant, Amelie F. & Massey, Douglas S., 2003. "Labor Market Segmentation and the Earnings of German Guestworkers," IZA Discussion Papers 774, Institute of Labor Economics (IZA).
    9. Karsten Wasiluk, 2014. "Technology Adoption and Demographic Change," Working Paper Series of the Department of Economics, University of Konstanz 2014-05, Department of Economics, University of Konstanz.
    10. Julia Lang, 2012. "The Aims of Lifelong Learning: Age-Related Effects of Training on Wages and Job Security," SOEPpapers on Multidisciplinary Panel Data Research 478, DIW Berlin, The German Socio-Economic Panel (SOEP).
    11. Lang, Julia, 2012. "The aims of lifelong learning: Age-related effects of training on wages and job security," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62073, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    wages; occupational changes; intra-firmmobility; internal labor markets;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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