Career-Hopping: Learning and Turnover in an Imperfect Labor Market
AbstractThis 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.
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Bibliographic InfoPaper provided by Institute of Industrial Relations, UC Berkeley in its series Institute for Research on Labor and Employment, Working Paper Series with number qt7jq2v066.
Date of creation: 18 Mar 2006
Date of revision:
JEL D31; J62;
Find related papers by JEL classification:
- JEL - Labor and Demographic Economics - - - - -
- 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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