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Who benefits from a job change: The dwarfs or the giants?

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Author Info

  • Pavlopoulos, Dimitris

    (CEPS/INSTEAD and University of Leuven)

  • Fouarge, Didier

    (Research Center for Education and the Labour Market (ROA))

  • Muffels, Ruud

    (Tilburg University, Department of Sociology)

  • Vermunt, Jeroen K.

    (Tilburg University, Department of Methodology and Statistics)

Abstract

Empirical studies have shown that voluntary job-to-job changes have a positive effect on wage mobility. In this paper, we suggest that the impact of a job change on wage growth depends on the position in the wage distribution. Using panel data from the UK and Germany, we investigate the effect of employer changes and within-firm job changes on year-to-year wage mobility. We show that a change of employer results into a wage increase for the low-paid workers but not for the high-paid workers. Within-firm job changes produce, on average, moderate wage gains for the low-paid workers in the UK, but have no effect in Germany. Results on 3-year wage mobility are shown to be very similar to the results on year-to-year wage growth.

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Bibliographic Info

Paper provided by IRISS at CEPS/INSTEAD in its series IRISS Working Paper Series with number 2007-16.

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Length: 31 pages
Date of creation: Dec 2007
Date of revision:
Handle: RePEc:irs:iriswp:2007-16

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Keywords: low pay ; high pay ; job mobility ; wage mobility;

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Citations

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Cited by:
  1. Prejmerean, Mihaela Cornelia & Vasilache, Simona, 2008. "What's a university worth? Changes in the lifestyle and status of post-2000 European Graduates," IRISS Working Paper Series 2008-05, IRISS at CEPS/INSTEAD.
  2. Corsini, Lorenzo, 2008. "Institutions, Technological Change and the Wage Differentials Between Skilled and Unskilled Workers: Theory and Evidence from Europe," IRISS Working Paper Series 2008-02, IRISS at CEPS/INSTEAD.
  3. Adele Bergin, 2013. "Job Changes and Wage Changes: Estimation with Measurement Error in a Binary Variable," Economics, Finance and Accounting Department Working Paper Series n240-13.pdf, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.

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