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Middle-Age Job Mobility: Its Determinants and Consequences

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  • Ann P. Bartel
  • George J. Borjas

Abstract

Our paper uses the wealth of information available in the NLS to expand on previous work in several ways. First, we investigate whether there is a meaningful distinction among types of job separations. Traditional analysis has categorized job separations as either employee-initiated (quits) or employer-initiated (layoffs). We question whether this dichotomy is correct. The National Longitudinal Survey data is especially useful for studying the relationship between wages and the probability of quitting. Most theoretical work on the determinants of job separation concludes that the probability of changing jobs is related to a reservation wage. The NLS data set allows us to test this relationship since it includes information on the individual's "hypothetical wage"-- that is, the wage required to induce the individual to accept another job. Given this information, we are able to compare the effects of different measures of the individual's price of time (e.g. the current wage and the reservation wage) on the probability of quitting. In addition, we analyze the role of human capital variables, job related characteristics and family background in the determination of job mobility. The analysis of the determinants of job separations in the cross-section naturally leads to an investigation of the relationship between previous separations and future separations. In particular, we consider whether such a relationship exists, and whether the nature of previous separations is a good predictor of the nature of future separations. Finally, we analyze the effects of job mobility on earnings and on job satisfaction. We distinguish between the immediate gains to mobility and the future gains to mobility, and also consider whether the nature of the separation is an important determinant of the consequences of job mobility.

Suggested Citation

  • Ann P. Bartel & George J. Borjas, 1977. "Middle-Age Job Mobility: Its Determinants and Consequences," NBER Working Papers 0161, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:0161
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    References listed on IDEAS

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    Cited by:

    1. Ann P. Bartel & George J. Borjas, 1981. "Wage Growth and Job Turnover: An Empirical Analysis," NBER Chapters, in: Studies in Labor Markets, pages 65-90, National Bureau of Economic Research, Inc.
    2. Ann P. Bartel, 1980. "The Economics of Migration: An Empirical Analysis with Special Referenceto the Role of Job Mobility," NBER Working Papers 0198, National Bureau of Economic Research, Inc.
    3. Robert L. Clark & Joseph F. Quinn, 1999. "Effects of Pensions on Labor Markets and Retirement," Boston College Working Papers in Economics 431, Boston College Department of Economics.
    4. Jonathan Gruber & Brigitte C. Madrian, 1993. "Limited Insurance Portability and Job Mobility: The Effects of Public Policy on Job-Lock," NBER Working Papers 4479, National Bureau of Economic Research, Inc.
    5. Ashok Thomas & Luca Spataro, 2013. "Pension funds and Market Efficiency: A review," Discussion Papers 2013/164, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    6. Gustman, Alan L. & Steinmeier, Thomas L., 1993. "Pension portability and labor mobility : Evidence from the survey of income and program participation," Journal of Public Economics, Elsevier, vol. 50(3), pages 299-323, March.
    7. George J. Borjas, 1981. "Job Mobility and Earnings over the Life Cycle," ILR Review, Cornell University, ILR School, vol. 34(3), pages 365-376, April.
    8. Jonathan Gruber, 1998. "Health Insurance and the Labor Market," NBER Working Papers 6762, National Bureau of Economic Research, Inc.
    9. Ann P. Bartel, 1980. "Wages, Nonwage Job Characteristics, and Labor Mobility," NBER Working Papers 0552, National Bureau of Economic Research, Inc.
    10. Brigitte C. Madrian, 1994. "Employment-Based Health Insurance and Job Mobility: Is there Evidence of Job-Lock?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(1), pages 27-54.
    11. Eric Thompson & Ellen J. Hahn & Glenn Blomquist & John Garen & Don Mullineaux & Nola Ogunro & Mary K. Rayens, 2008. "Smoke‐Free Laws And Employee Turnover," Contemporary Economic Policy, Western Economic Association International, vol. 26(3), pages 351-359, July.
    12. Alan L. Gustman & Thomas L. Steinmeier, 1987. "Pensions, Efficiency Wages, and Job Mobility," NBER Working Papers 2426, National Bureau of Economic Research, Inc.

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