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So Many Rocket Scientists, So Few Marketing Clerks: Estimating the Effects of Economic Reform on Occupational Mobility in Estonia

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Author Info

  • Campos, Nauro F

    ()
    (Brunel University)

  • Dabušinskas, Aurelijus

    ()
    (Bank of Estonia)

Abstract

Why do workers change occupations? This paper investigates occupational mobility and its determinants following a large unexpected shock (communism's collapse in 1989.) Our calculations show that from 1989 to 1995 between 35 and 50 percent of Estonian workers changed occupations (classified at one- and four-digits, respectively). Among the main determinants of occupational mobility we find firm tenure, labour market experience and returns to alternative occupations. We investigate the role of gender and ethnicity and find strong results for the former, with mobility mainly driven by push factors for males (returns to current occupations) and by pull factors for females (returns to alternative occupations).

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3886.

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Length: 39 pages
Date of creation: Dec 2008
Date of revision:
Publication status: published in: European Journal of Political Economy, 2009, 25 (2), 261-275
Handle: RePEc:iza:izadps:dp3886

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Keywords: occupational mobility; human capital; transition economies;

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References

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  1. Derek Neal, 1998. "The Complexity of Job Mobility Among Young Men," NBER Working Papers 6662, National Bureau of Economic Research, Inc.
  2. Charles Kroncke & Kenneth Smith, 1999. "The wage effects of ethnicity in Estonia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 179-199, March.
  3. Sabirianova Klara, 2001. "The Great Human Capital Reallocation: A Study of Occupational Mobility in Transitional Russiah," EERC Working Paper Series 2k/11e, EERC Research Network, Russia and CIS.
  4. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1990. "The Allocation of Talent: Implications for Growth," NBER Working Papers 3530, National Bureau of Economic Research, Inc.
  5. Oded Galor & Nachum Sicherman, 1988. "A Theory of Career Mobility," University of Chicago - George G. Stigler Center for Study of Economy and State 51, Chicago - Center for Study of Economy and State.
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  7. Nauro F. Campos & Abrizio Coricelli, 2002. "Growth in Transition: What We Know, What We Don't, and What We Should," Journal of Economic Literature, American Economic Association, vol. 40(3), pages 793-836, September.
  8. 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.
  9. Galor, Oded & Tsiddon, Daniel, 1996. "Technological Progress, Mobility, and Economic Growth," CEPR Discussion Papers 1413, C.E.P.R. Discussion Papers.
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  12. Brian P. McCall, 1988. "Occupational Matching: A Test of Sorts," Working Papers 617, Princeton University, Department of Economics, Industrial Relations Section..
  13. Günther Taube & René Weber, 1999. "On the Fast Track to EU Accession - Macroeconomic Effects and Policy Challenges for Estonia," IMF Working Papers 99/156, International Monetary Fund.
  14. Daron Acemoglu, 2000. "Technical Change, Inequality, and the Labor Market," NBER Working Papers 7800, National Bureau of Economic Research, Inc.
  15. Moscarini, Giuseppe & Thomsson, Kaj, 2006. "Occupational and Job Mobility in the US," Working Papers 19, Yale University, Department of Economics.
  16. Svejnar, Jan, 1999. "Labor markets in the transitional Central and East European economies," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 42, pages 2809-2857 Elsevier.
  17. Kathryn L. Shaw, 1985. "Occupational change, employer change, and the transferability of skills," Working Paper Series / Economic Activity Section 55, Board of Governors of the Federal Reserve System (U.S.).
  18. Dolton, Peter J & Kidd, Michael P, 1998. "Job Changes, Occupational Mobility and Human Capital Acquisition: An Empirical Analysis," Bulletin of Economic Research, Wiley Blackwell, vol. 50(4), pages 265-95, October.
  19. Kambourov, Gueorgui & Manovskii, Iourii, 2004. "Rising Occupational and Industry Mobility in the United States: 1968-1993," IZA Discussion Papers 1110, Institute for the Study of Labor (IZA).
  20. Rivo Noorkoiv & Peter F. Orazem & Allan Puur & Milan Vodopivec, 1998. "Employment and wage dynamics in Estonia, 1989-95," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 6(2), pages 481-503, November.
  21. Megan Beckett & Julie Da Vanzo & Narayan Sastry & Constantijn Panis & Christine Peterson, 2001. "The Quality of Retrospective Data: An Examination of Long-Term Recall in a Developing Country," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 593-625.
  22. Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555 Elsevier.
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Citations

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Cited by:
  1. Masso, Jaan & Eamets, Raul & Mõtsmees, Pille, 2013. "The Effect of Migration Experience on Occupational Mobility in Estonia," IZA Discussion Papers 7482, Institute for the Study of Labor (IZA).
  2. Fidrmuc, Jarko & Senaj, Matus, 2012. "Human Capital, Consumption, and Housing Wealth in Transition," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62058, Verein für Socialpolitik / German Economic Association.
  3. Jaan Masso & Raul Eamets & Pille Mõtsmees, 2013. "The Effect of Temporary Migration Experience on Occupational Mobility in Estonia," CESifo Working Paper Series 4322, CESifo Group Munich.

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