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Job mobility and earnings over the life cycle

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  • George J. Borjas

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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  1. Freeman, Richard B, 1974. "Occupational Training in Proprietary Schools and Technical Institutes," The Review of Economics and Statistics, MIT Press, vol. 56(3), pages 310-18, August.
  2. Polachek, Solomon William, 1975. "Differences in Expected Post-school Investments as a Determinant of Market Wage Differentials," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(2), pages 451-70, June.
  3. Griliches, Zvi, 1976. "Wages of Very Young Men," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 84(4), pages S69-85, August.
  4. 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.
  5. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 75, pages 352.
  6. Malkiel, Burton G & Malkiel, Judith A, 1973. "Male-Female Pay Differentials in Professional Employment," American Economic Review, American Economic Association, American Economic Association, vol. 63(4), pages 693-705, September.
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Cited by:
  1. repec:iab:iabmit:v:35:i:2:p:205-231 is not listed on IDEAS
  2. Alan Manning & Joanna Swaffield, 2005. "The gender gap in early career wage growth," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 19883, London School of Economics and Political Science, LSE Library.
  3. Alan Manning & Farzad Saidi, 2008. "Understanding the gender pay gap: what's competition got to do with it?," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 28510, London School of Economics and Political Science, LSE Library.
  4. Javier Gómez Pineda, . "A Framework for Macroeconomic Stability in Emerging Market Economies," Borradores de Economia 320, Banco de la Republica de Colombia.
  5. Emily C. Blank, 1988. "Layoffs and Wage Growth of Male Household Heads," Eastern Economic Journal, Eastern Economic Association, vol. 14(3), pages 239-250, Jul-Sep.
  6. Parrado, Eric & Caner, Asena & Wolff, Edward N., 2007. "Occupational and industrial mobility in the United States," Labour Economics, Elsevier, Elsevier, vol. 14(3), pages 435-455, June.
  7. Harvey S. James & Derek M. Johnson, 2000. "Just-cause provisions, severance pay, and the efficiency wage hypothesis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 21(2), pages 83-88.
  8. 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], Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 35(2), pages 205-231.
  9. Nuno M. O. Romão & Vitor M. A. Escaria, 2004. "Wage mobility, Job mobility and Spatial mobility in the Portuguese economy," ERSA conference papers ersa04p584, European Regional Science Association.
  10. Alan L. Gustman & Thomas L. Steinmeier, 1982. "Partial Retirement and Wage Profiles of Older Workers," NBER Working Papers 1000, National Bureau of Economic Research, Inc.
  11. Panigo, Demian & Naticchioni, Paolo, 2004. "Employment protection, job-tenure and short term mobility wage gains," CEPREMAP Working Papers (Couverture Orange) 0402, CEPREMAP.
  12. Emily Blank, 1989. "Changes in the stock of on-the-job training, race, and wage growth," The Review of Black Political Economy, Springer, Springer, vol. 17(4), pages 45-57, March.

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