This paper demonstrates that labor turnover is a significant factor in understanding wage growth since it affects both wage growth across jobs and wage growth within the job. Our analysis shows that young men who quit experience significant wage gains compared to stayers and compared to their own wage growth prior to the job change. Among older men, a quit increases wage growth only if the individual said he changed jobs because he found a better job. Yet in both age groups, individuals who expect to remain on the current job experience steeper wage growth per time period on that job. Thus labor turnover has offsetting effects on wage growth, leading to wage gains across jobs but flatter growth in shorter jobs. Our empirical analysis shows however that total life-cycle wage growth is positively related to current tenure. While early mobility may pay, individuals who are still changing jobs later in life experience lower overall wage growth.
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number
0285.
Length: Date of creation: Sep 1982 Date of revision: Publication status: published relationship to a non-chapter. This should not happen. Please contact NBER. Handle: RePEc:nbr:nberwo:0285
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Jacob Mincer & Boyan Jovanovic, 1982.
"Labor Mobility and Wages,"
NBER Working Papers
0357, National Bureau of Economic Research, Inc.
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Jacob Mincer & Boyan Jovanovic, 1981.
"Labor Mobility and Wages,"
NBER Chapters,
in: Studies in Labor Markets, pages 21-64
National Bureau of Economic Research, Inc.
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