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Wage Changes in Job Changes

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Author Info
Jacob Mincer
Abstract

This is a study of short and longer-runwage gains observed in moving from one job (firm) to the next. Short-run wage gains are defined as wage changes over the survey year bracketing the move minus the opportunity cost of moving. The latter is measured by waqe growth of a subgroup of stayers whose mobility behavior and other charactristics are the same as of the current period movers. Longer-run wage gains are defined as the difference in wages between two successive jobs at the same tenure levels, net of experience, again net of opnortunity costs. Wage gains of movers are generally positive, except for layoffsof older workers. A large part of the gain is due to the lesser wage growth on the job of movers compared to (all) stayers. This is consistent with below average amounts of on the job training observed for movers compared to all workers. Wage gains of quits exceed those of layoffs, despite similar wage levels and wage growth on the preceding job. Wage gains of older movers are smaller compared to gains of younger movers, both in quits and in layoffs. Differences in search conditions and in the nature of separations help to explain these findings.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 1907.

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Date of creation: Apr 1986
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Publication status: published as Mincer, Jacob. "Wage Changes in Job Changes," Research in Labor Economics, Vol. 8A, 1986.
Handle: RePEc:nbr:nberwo:1907

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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.:
  1. Linda S. Leighton & Jacob Mincer, 1982. "Labor Turnover and Youth Unemployment," NBER Working Papers 0378, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  2. Flinn, Christopher J & Heckman, James J, 1983. "Are Unemployment and Out of the Labor Force Behaviorally Distinct Labor Force States?," Journal of Labor Economics, University of Chicago Press, vol. 1(1), pages 28-42, January. [Downloadable!] (restricted)
    Other versions:
  3. Burdett, Kenneth & Ondrich, Jan I, 1985. "How Changes in Labor Demand Affect Unemployed Workers," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 1-10, January. [Downloadable!] (restricted)
  4. Nickell, Stephen J, 1979. "Estimating the Probability of Leaving Unemployment," Econometrica, Econometric Society, vol. 47(5), pages 1249-66, September. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. Takako Fujiwara-Greve & Henrich R. Greve, 2000. "The Role of Expectation in Job Search and Firm Size Effect on Wages," Econometric Society World Congress 2000 Contributed Papers 0857, Econometric Society. [Downloadable!]
  2. Marcela Perticara, . "Wage Mobility Through Job Mobility," ILADES-Georgetown University Working Papers inv141, Ilades-Georgetown University, School of Economics and Bussines. [Downloadable!]
    Other versions:
  3. David Campbell, 2001. "Estimating the Wage Effects of Job Mobility in Britain," Studies in Economics 0117, Department of Economics, University of Kent. [Downloadable!]
  4. John M. Fitzgerald, 1999. "Job Instability and Earnings and Income Consequences: Evidence from SIPP: 1983-1995," JCPR Working Papers 99, Northwestern University/University of Chicago Joint Center for Poverty Research. [Downloadable!]
  5. Julie L. Hotchkiss & M. Melinda Pitts & John C. Robertson, 2004. "Wage gains among job changers across the business cycle:> insight from state administrative data," Working Paper 2004-19, Federal Reserve Bank of Atlanta. [Downloadable!]
  6. Jacob Mincer, 1988. "Job Training, Wage Growth, and Labor Turnover," NBER Working Papers 2690, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. repec:ese:iserwp: is not listed on IDEAS
  8. Stephen F. Seninger, 1997. "Jobless spells and re-employment wages," Applied Economics, Taylor and Francis Journals, vol. 29(9), pages 1169-1177, September. [Downloadable!] (restricted)
  9. repec:fth:prinin:308 is not listed on IDEAS
  10. Robert H. Topel, 1990. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," NBER Working Papers 3294, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  11. Jacob Mincer, 1994. "The Production of Human Capital and the Lifecycle of Earnings: Variations on a Theme," NBER Working Papers 4838, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Wolff, Joachim, 2006. "How does experience and job mobility determine wage gain in a transition and a non-transition economy? : the case of east and west Germany," IAB Discussion Paper 200627, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]
  13. Lutz Schneider, 2007. "Zu alt für einen Wechsel? : Zum Zusammenhang von Alter, Lohndifferentialen und betrieblicher Mobilität," IWH Discussion Papers 1-07, Halle Institute for Economic Research. [Downloadable!]
  14. von Wachter, Till & Bender, Stefan, 2004. "In the Right Place at the Wrong Time: The Role of Firms and Luck in Young Workers’ Careers," IZA Discussion Papers 1348, Institute for the Study of Labor (IZA). [Downloadable!]
  15. Nachum Sicherman, 1996. "Gender Differences in Departure from a Large Firm," NBER Working Papers 4279, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  16. Henry S. Farber, 1992. "The Analysis of Inter-Firm Worker Mobility," Working Papers 687, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  17. Jacob Mincer, 1991. "Education and Unemployment," NBER Working Papers 3838, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  18. Henry S. Farber, 1993. "The Analysis of Inter-Firm Worker Mobility," NBER Working Papers 4262, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  19. Pavlopoulos, Dimitris & Fouarge, Didier & Muffels, Ruud & Vermunt, Jeroen K., 2007. "Who benefits from a job change: The dwarfs or the giants?," IRISS Working Paper Series 2007-16, IRISS at CEPS/INSTEAD. [Downloadable!]
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