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Job mobility and earnings over the life cycle

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  • George J. Borjas
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    Abstract

    Previous studies have shown that in the short run quits generally lead to wage increases on the next job and layoffs to no increase or to a wage cut. The author of this study argues, however, that the prospect of a job change for any reason creates a disincentive for a worker to invest in training that is specific to the current job, and therefore those who change jobs frequently may earn less over their life cycle than those who, other things equal, seldom change jobs. An analysis of data from the National Longitudinal Survey of Mature Men supports that expectation, showing that for white males job separations usually lead to wage gains in the short run but nonmobile workers tend to achieve significantly higher wages over the long run. (Abstract courtesy JSTOR.)

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    Bibliographic Info

    Article provided by ILR Review, Cornell University, ILR School in its journal ILR Review.

    Volume (Year): 34 (1981)
    Issue (Month): 3 (April)
    Pages: 365-376

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    Handle: RePEc:ilr:articl:v:34:y:1981:i:3:p:365-376

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    Cited by:
    1. repec:iab:iabmit:v:35:i:2:p:205-231 is not listed on IDEAS
    2. Parrado, Eric & Caner, Asena & Wolff, Edward N., 2007. "Occupational and industrial mobility in the United States," Labour Economics, Elsevier, vol. 14(3), pages 435-455, June.
    3. Alan L. Gustman & Thomas L. Steinmeier, 1985. "Partial Retirement and Wage Profiles of Older Workers," NBER Working Papers 1000, National Bureau of Economic Research, Inc.
    4. Alan Manning & Farzad Saidi, 2008. "Understanding the Gender Pay Gap: What's Competition Got to Do with It?," CEP Discussion Papers dp0898, Centre for Economic Performance, LSE.
    5. Emily Blank, 1989. "Changes in the stock of on-the-job training, race, and wage growth," The Review of Black Political Economy, Springer, vol. 17(4), pages 45-57, March.
    6. Henneberger, Fred & Sousa-Poza, Alfonso, 2002. "Beweggründe und Determinanten zwischenbetrieblicher Mobilität: Die Schweiz in einer internationalen Perspektive (Motives and determinants of job-to-job mobility : Switzerland in an international per," Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 35(2), pages 205-231.
    7. Alan Manning & Joanna Swaffield, 2005. "The gender gap in early career wage growth," LSE Research Online Documents on Economics 19883, London School of Economics and Political Science, LSE Library.
    8. Alan Manning & Joanna Swaffield, 2008. "The gender gap in early-career wage growth," Economic Journal, Royal Economic Society, vol. 118(530), pages 983-1024, 07.

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